The first seven non-bank financial institutions have submitted their applications to the Bank of Thailand for a nanofinance operator's licence.
Two applicants are in the process of reviewing their application documents, while five others are in the process of adjusting their submitted documents, central bank spokesman Chirathep Senivongs Na Ayudhya said yesterday without disclosing their names.
"The central bank will make an assessment as soon as possible once the process of document adjustment is completed, which will take no more than 60 days with consideration by the Finance Ministry included in the approval procedure," he said.
"A company is required to begin conducting its nanofinance business within a year after obtaining its operating licence."
Seven non-bank institutions had applied for nanofinance licences as of Tuesday, Mr Chirathep said.
Earlier, Aira & Aiful Plc, a joint venture between MAI-listed Aira Capital and Tokyo-based financial services group Aiful Corporation, planned to be among the non-bank institutions applying for a licence to operate a nanofinance venture.
Applications for the nanofinance scheme opened on Jan 26, and no deadline has been set by the Bank of Thailand.
Operators with registered capital of at least 50 million baht will be eligible to become nanofinance institutions under the central bank's criteria, with their debt-to-equity ratio not exceeding seven times their registered capital.
If an operator's ratio exceeds the stipulated threshold, they must reach the specified ratio by next Jan 23.
Commercial banks and registered institutions can operate a nanofinance business immediately without seeking permission from the finance minister, but non-bank lenders must gain the minister's approval following their applications.
Interest rates for nanofinance will be capped at 3% per month or 36% per year, with the principle not exceeding 100,000 baht in each case.
The nanofinance scheme is one of the government's priorities for tackling loans sharks and giving low-income earners access to formal financial sources.