The Thai Cabinet approved a substantial loan initiative aimed at boosting employment and entrepreneurship with a budget of 15 billion baht, targeting street vendors and small businesses to alleviate high-interest debt. The scheme is expected to benefit around 300,000 individuals across the country.
Finance Deputy Minister Paophum Rojanasakul announced that the Cabinet agreed to allow the Government Savings Bank (GSB) to implement the Job Creation and Career Building Loan Project.
The initiative, with a budget not exceeding 15 billion baht, is designed to enhance liquidity and alleviate debt for small-scale entrepreneurs, freelancers, individuals with regular income, employees, and street vendors.
The loans will serve as working capital to improve liquidity or to pay off informal or high-interest debts incurred for business purposes, said Paophum.
“The Cabinet’s decision aims to provide financial relief and support to those who most need it, particularly small business owners and freelancers struggling with high-interest debts.”
Each borrower can access up to 50,000 baht with a fixed interest rate of 0.75% per month, repayable over a maximum period of five years. Applications for this loan are open until December 30, 2025.
Notably, the GSB will not seek budget compensation from the government but will instead reduce some of its profits to facilitate these loans, making them more lenient than standard loans.
The Ministry of Finance anticipates that this project will inject significant funds into the economy and assist over 300,000 people. By offering financial tools to small and independent business operators, the programme seeks to mitigate the reliance on informal money lenders often associated with high interest rates.
The initiative also underscores the government’s commitment to fostering financial inclusion and supporting grassroots economic activities.
The move is part of a broader strategy to strengthen Thailand’s economy by empowering small businesses and reducing the financial burdens on its citizens. By targeting informal economic sectors, the government hopes to stimulate growth from the ground up, encouraging entrepreneurship and self-sufficiency, added Paophum.
“This is a crucial step in supporting those in precarious financial situations, providing them with the means to improve their livelihoods and contribute to the economy.”
By focusing on small-scale entrepreneurs and informal sector workers, the project reflects a targeted approach to economic recovery, recognising the vital role these sectors play in the broader economic landscape. It aims not only to provide immediate financial relief but also to establish a foundation for sustainable growth and development, reported KhaoSod.
What Other Media Are Saying
- Bangkok Post reports the Thai government’s 15-billion-baht loan initiative aims to support struggling SMEs with low interest rates, addressing rising non-performing loans amid economic challenges and promoting intra-Asean trade. (read more)
Frequently Asked Questions
Here are some common questions asked about this news.
Why is the Thai government prioritising loans for small-scale entrepreneurs?
They aim to alleviate high-interest debt burdens and boost grassroots economic growth, recognising the vital role small businesses play.
How might the loan project impact Thailand’s informal economic sectors?
By providing financial support, it could reduce reliance on informal lenders and stimulate growth from the ground up.
What if the initiative succeeds in reducing high-interest debt reliance?
It could lead to enhanced financial stability for individuals and contribute to a more robust economy.
How does this loan initiative reflect the government’s commitment to financial inclusion?
By offering accessible financial solutions to those excluded from traditional banking, fostering entrepreneurship and self-sufficiency.
What are the potential long-term benefits of the Job Creation and Career Building Loan Project?
Establishing sustainable growth, reducing financial burdens, and empowering small businesses for a stable economic future.
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