Bangkok: Government Savings Bank opens new loan, maximum credit limit 20,000 baht, lower interest rate than informal debt, can borrow even without credit.

According to Thai News Agency, Ms. Sasikarn Wattanachan, deputy government spokeswoman, revealed that the government is moving forward with stimulating the economy through loan measures to increase liquidity for both large businesses and individuals. The Government Savings Bank has launched a measure called ‘Credit Building Loans, Creating Opportunities’ that helps those who have previously applied for loans but were not approved, as well as those who have no credit history, to access sources of funds in the system more easily.

This measure will help increase credit approvals, increase cash flow into the economy, and promote grassroots people to have access to credit from financial institutions, with a target of 300,000 people in the first year and expanding assistance to cover 1 million people within 3 years.

This loan provides a maximum credit limit of 20,000 baht per person, without collateral or a guarantor. The interest rate is fixed at 0.60% per month. For example, if you borrow 10,000 baht, you will pay only 60 baht in interest per month, which is cheaper than informal debt. You can pay in installments for up to 1 year, with the right to be free of principal payments for the first 3 months.

For those with good credit and need additional capital to increase business liquidity, you can apply for a loan of up to 50,000 baht per person, without collateral, with a fixed interest rate of 0.75% per month, and can be repaid in installments for up to 5 years.

Qualifications of loan applicants include freelancers, regular income earners, employees, vendors, or service providers who have income but no credit history or have never used credit in the system for more than 2 years. They must be Thai nationals, have a clear address, and can be contacted. Loan consideration will depend on the necessity and ability of the borrower to repay.

Those interested can register to reserve their rights and apply for a loan via the MyMo application from March 14, 2025 onwards.

‘The government confirms that it will continue to support financial measures to enable people to access formal credit, reduce the burden of informal debt, and help stimulate the economy at all levels. We are confident that this measure will be an important step in helping grassroots people have more financial opportunities and help strengthen the Thai economy to grow steadily and sustainably,’ said Ms. Sasikarn.