Bangkok: The Bank for Agriculture and Agricultural Cooperatives (BAAC) has announced a reduction in loan interest rates by up to 0.25 percent, effective from November 1, 2024, as part of an effort to alleviate the financial burden on its farmer customers and aid in economic recovery. The bank has maintained its deposit rates to encourage savings discipline among customers.
According to Thai News Agency, BAAC has adjusted its Minimum Retail Rate (MRR) and Minimum Overdraft Rate (MOR) to align with market trends and the recent Monetary Policy Committee’s decision to lower the policy interest rate by 0.25 percent. The MRR for general customers will be reduced by 0.10 percent to 6.875 percent annually, while vulnerable groups, including SMEs facing production challenges and non-performing loan (NPL) debtors undergoing restructuring, will see a reduction of 0.25 percent to 6.725 percent annually. The MOR will also be reduced to 6.875 percent annually.
Chatchai Sirilai, President of BAAC, stated that as a state f
inancial institution, BAAC is committed to supporting government policies aimed at improving the agricultural sector sustainably. He emphasized that the reduction in interest rates is part of BAAC’s mission to lessen the financial burden on farmers and other vulnerable groups, thereby aiding in their economic recovery and enhancing their financial resilience.
In addition to the interest rate adjustments, BAAC is implementing various measures to address debt issues and improve the quality of life for farmers. These measures include debt suspension for small debtors, low-interest loans to boost liquidity, and support for informal debt management. BAAC also offers specialized loans such as the SME Agricultural Strengthening Loan and the Good People Express Loan for Village Health Volunteers.
BAAC remains committed to fostering financial stability and promoting savings discipline by freezing deposit rates for the foreseeable future, thereby reinforcing the financial immunity of its customers.