Bangkok: The Treasury Department is advancing efforts to tackle household debt through the launch of “You Fight, We Help, Phase 2,” with a proposal set to be presented to the Cabinet soon. The initiative aims to expand the Government Housing Bank’s (GH Bank) “Asset Based on Rights” business, offering long-term loans for up to 99 years and introducing new loans worth 150 billion baht for the latter half of the year.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance, Mr. Pichai Chunhavachira, has expressed the government’s intention to enhance the “Pay, Close, Finish” credit limit per person, doubling it from 5,000 baht to 10,000 baht and further increasing from 10,000 baht to 30,000 baht. The government plans to compensate for the interest difference over a three-year period, aiming to alleviate 123 billion baht of outstanding debt. The initiative seeks to address issues particularly prevalent among non-bank customers, including credit card and car loan debts.
The government is also addressing non-performing loans (NPL), with a focus on debts below 100,000 baht, which make up a significant portion of the 1.2 trillion baht NPL debt group. Plans include providing support to this group to stabilize their financial situation. The introduction of policies encouraging the trade-in of old cars for new ones, coupled with tax privileges, particularly aims to boost pickup truck sales.
Mr. Pichai has instructed GH Bank executives to accelerate lending in the second half of 2025, aiming to inject over 150 billion baht into the economy. This move is expected to stimulate growth in the real estate sector, subsequently benefiting employment and related industries. GH Bank is set to expand its operations by offering long-term property-based rights loans, potentially attracting more investment.
GH Bank’s Managing Director, Mr. Kamolpop Virapala, stated that special monitoring group (SM) customers who have maintained a loan with the bank for at least one year will benefit from reduced interest rates and installment payments for up to a year. This includes an interest rate of 0% for the first six months and monthly installments as low as 1,000 baht. Currently, over 4,000 accounts have registered for this initiative, totaling a principal balance of over 5 billion baht.
The “You Fight, We Help” project has seen registration from 80,939 customers. For those unable to participate, GH Bank offers assistance for special monitoring and NPL customers affected by income disruptions, covering more than 373,000 accounts. In 2024, over 238,000 customers had their debts resolved and returned to normal status through household debt resolution measures. In the first five months of 2025, GH Bank has aided over 135,000 accounts in regaining normal status through economic relief measures.