The second phase of the government's welfare and subsidy scheme, which will go before the cabinet for approval today, will contain a 110-billion-baht loan from two state-owned banks to allow the poor better access to financial sources, employment training and hopefully jobs.
The Government Savings Bank (GSB) has prepared 15 billion baht worth of lending through four loan schemes, said chief executive and president Chatchai Payuhanaveechai.
The lending plans entail low rate loans to recipients of the government's welfare and subsidy scheme with a cap of 50,000 baht per borrower, a loan for homestay operators who are government welfare recipients, and funding to franchise and street food vendors.
He said recipients of the government's welfare scheme, those earning up to 100,000 baht a year, are eligible to apply for a homestay loan worth up to 50,000, while low-income earners with monthly income of 8,000-15,000 can apply for a loan worth up to 200,000. Those whose monthly income exceeds 15,000 baht can apply for the loan worth up to 1 million.
Low-income earners interested in the bank's franchise and street food loans can seek up to 50,000 baht each.
The loan schemes will be interest-free in the first year, while the bank will charge 0.75% per month for the remainder of the loan term, he said.
The GSB has not asked for the Finance Ministry to subsidise the interest costs incurred from the launch of the loan schemes, requesting that they be included in the bank's key performance indicators instead.
The four schemes are expected to cost the state-owned bank 400 million baht a year, said Mr Chatchai.
The second phase of the government's welfare and subsidy scheme is aimed at addressing the root causes of poverty, with a focus on job creation.
In late August the cabinet approved the first phase of the aid package, worth 41.9 billion baht for 11.7 million low-income earners -- 5 million of whom have income below the poverty line of 30,000 baht a year.
Under the scheme, the government transfers 200-300 baht per month to each welfare smart card. Recipients earning under 30,000 baht a year get a monthly allowance of 300 and those with annual earnings of 30,000-100,000 receive 200 to buy discounted goods at Thong Fah Pracha Rat shops and other designated stores.
Each cardholder also receives 1,500 baht each month to subsidise transport, and 500 for inter-provincial public buses, third-class trains and local public buses and electric trains.
The Bank for Agriculture and Agricultural Cooperatives (BAAC) has earmarked cheap loans worth 95 billion baht for the second phase of the scheme. The bank will offer loans at a special rate, which is below its minimum retail rate of 7%, for three years.
BAAC aims to lend 45-billion-baht to 384,000 farmers to encourage them to grow other crops, 20 billion to 400,000 farmers to upgrade their skills, 20 billion to 3.3 million farmers to refinance lending from loan sharks and 10 billion to 200,000 farmers as emergency loans.
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