With Thailand’s household and non-performing debts stabilizing, Finance Minister Pichai Chunhavajira has called on financial institutions to accelerate loan approvals. He made the remarks on Friday at the launch of Government Savings Bank’s (GSB) “Credit-Building, Opportunity-Creating Loan” program, emphasizing that the country’s household debt, now close to 90% of GDP, appears to have peaked.
Mr. Pichai pointed to economic indicators suggesting a slow recovery, including rising demand for used pickup trucks, which has driven up prices compared to previous months. Given this backdrop, he urged banks to increase lending to support economic growth. He also plans to meet with the Thai Bankers’ Association to push for faster loan approvals and lower financial costs for businesses seeking credit.
On real estate stimulus measures, he noted that the Bank of Thailand is reviewing a proposal from the Finance Ministry to ease loan-to-value conditions. Additionally, he mentioned the potential extension of reductions in transfer and mortgage fees, which expired last year, from 2% and 1% respectively to 0.01%.
As part of GSB’s new loan initiative, the government aims to provide credit to 300,000 first-time borrowers, with a maximum loan amount of 20,000 baht per person. Mr. Pichai also provided updates on the “You Fight, We Help” debt relief program, reporting that applications have stabilized and that unused funds may be redirected to other initiatives.
GSB president Vitai Ratanakorn outlined the terms of the new loan program, which offers an interest rate of 0.60% per month for a 12-month term. Borrowers who improve their credit standing could qualify for additional loans ranging from 30,000 to 50,000 baht. The bank aims to reach 1 million applicants over three years, with applications processed through its mobile app.
