BAAC helps clear informal debts for more than 40,000 farmers

BANGKOK, 23 August 2017 (NNT) - The Bank for Agriculture and Agricultural Cooperatives (BAAC) has prepared 10 billion baht to solve the problem of informal debt among farmers.

BAAC President Apirom Sukprasert said the bank is continuing its program to reduce informal debt among agricultural households. Low-interest loans will be approved to farmers to clear their debt with loan sharks.

Each loan applicant with a cosigner can qualify for up to 100,000 baht. Applicants using real estate property as collateral can qualify for up to 150,000 baht, with 12% annual interest rate.

Since the program's inception, nearly four billion baht in loans has been extended to more than 40,000 farmers to formalize their debt. The farmers were also educated on how to manage their finances in a sustainable way, so they will not be tempted to seek loan sharks again.

The BAAC has also set aside another five billion baht for farmers to pay running expenses to help them get on their feet. More than 58,000 farmers have already taken out loans to pay for their daily expenses.

http://nwnt.prd.go.th/CenterWeb/News...C6008230010059

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Originally Posted by misskit

Applicants using real estate property as collateral can qualify for up to 150,000 baht, with 12% annual interest rate.

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The smart ones will take that and re-lend it at 10% per month, becoming loan sharks themselves.