Student fund extends loan lifespan

24-Jul-2021 Intellasia | BangkokPost | 5:02 AM Print This Post

The finance ministry’s Student Loans Fund has offered a relief measure to borrowers, extending the debt repayment period to up to 30 years from the current 15 years to ease their burden during the prolonged pandemic, says fund manager Chainarong Kajchapanan.

He said the loan committee approved the measure to help both existing borrowers, who are graduates repaying loans in instalments, and future student borrowers.

For borrowers allowing the fund to deduct part of their salary every month to repay the loan, a total of 1.4 million people, the fund is allowing them to repay at a rate as low as 10 baht per month from next month to June of 2022.

A previous measure the fund introduced to help borrowers cope with the pandemic included cutting the loan interest rate to 0.01 percent from 1 percent from early this year until December 31.

The ministry set up the fund after the 1997 economic crisis to help students. It has extended a total of 655 billion baht to around 6 million students over the past 20 years.

In fiscal 2021 the fund set a loan goal of 38 billion baht, aiming to help 624,000 students.

On Wednesday, the Bank of Thailand discussed with relevant authorities ways to lower household debt, starting with cooperatives and student loans, then expanding to cover agricultural loans next year.

Household debt is comprised of financial sources and loan sources, including those that are not under the central bank’s supervision.

As a result, the central bank needs cooperation from other authorities to reduce the country’s household debt.

https://www.bangkokpost.com/business/2153355/student-fund-extends-loan-lifespan

 

Category: Thailand

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