The state-owned Small and Medium Enterprise Development Bank of Thailand (SME Bank) is offering loans worth a combined 40 billion baht for taxi drivers to purchase cars and for Student Loan Fund (SLF) borrowers who are self-employed.
Of the 40 billion baht in loans, 10 billion is earmarked for taxi drivers seeking loans for car purchases, with the remainder for SLF borrowers who are self-employed, said president Mongkol Leelatham.
The loans are part of a raft of "New Year gifts" from the government. Both lending schemes will start tomorrow.
Under the taxi loan scheme, drivers can receive a bank loan of 700,000-1 million baht with maturity of 4-7 years.
With an interest rate just above 2%, taxi drivers who borrow 700,000 baht will owe 390 baht a day in repayment and those borrowing 1 million baht will owe 490 baht a day -- similar to the amount they pay for rental.
Some 90,000 taxis are nearing decommission, so the loan scheme can help drivers finance car purchases to provide better service to passengers, Mr Mongkol said.
For the remaining 30 billion baht in loans, SLF borrowers will be charged up to 3% interest.
The loans for SLF borrowers do not require collateral, but debt-servicing ability will be used to determine the lending amount, Mr Mongkol said.
If borrowers want a larger loan amount than the bank offers, a loan guarantee from Thai Credit Guarantee Corporation will be required, he said.
The bank expects 200,000 SLF borrowers to apply for the loans.
Fund manager Chainarong Kajchapanan said SLF debtors who are self-employed or want to be, as well as those with a good payment track record, should receive an opportunity.
The fund has 5.5 million borrowers.
Meanwhile, the Comptroller-General's Department said recipients of the government's welfare and subsidy scheme for the impoverished are able to use their monthly stipend from the state to pay for products using the Thung Ngern Pracharat mobile app.
Since the app's unveiling in August, welfare smartcard holders have used it to pay for 742 million baht in items, said Suttirat Rattanachot, director-general of the Comptroller-General's Department.
Some 14,500 shops accept welfare smartcards.
The new payment channel provides more convenience for smartcard holders and encourages low-income earners to embrace digital payment.
