BAAC readies trio of loan schemes worth B170bn
The Bank for Agriculture and Agricultural Cooperatives (BAAC) is preparing three low-interest loan schemes worth a combined 170 billion baht to rehabilitate an agricultural sector battered by the coronavirus crisis.
The BAAC's board of directors on Monday approved the low-interest loan schemes to help ailing farmers, said Finance Minister Uttama Savanayana, who chaired the board meeting.
The bank has implemented soft loan measures to create job opportunities for customers affected by natural disasters and the viral outbreak, Mr Uttama said.
The three low-interest loan schemes run from June 9 to 30.
The first scheme offers "sufficiency" lending at a sum of 10 billion baht, aiming to help with expenses and sufficiency farming or non-farm occupations that can increase clients' income. The credit line is capped at 50,000 baht per person, with zero interest applied for the first three months. The minimum retail rate (MRR) is 6.5% for the fourth month onward.
The second scheme is called "New Gen Hug Home Province" and has an amount of 60 billion baht. The scheme is designed to be used for investment or expenses in traditional agriculture or modern smart farming businesses where technology and innovation are incorporated.
Interest applied for borrowers using the loan for their expenses is zero for the first three months and a 6.5% MRR rate from the fourth month onward. For investment purposes, interest is capped at 4% during the first three years and the MRR rate of 6.5% is applied for the fourth year onward.
The third loan scheme is called "Jump Start Credit" with a loan amount of 100 billion baht, intended to be used for expenses for farm production during the 2020-21 season.
The credit line is capped at 50,000 baht per person, with 4% interest for the first year. Interest rates applied for the second year onward depend on interest specified for different types of customers.
Previously the BAAC rolled out an emergency loan worth 20 billion baht to alleviate necessary spending among affected farmers and farming households, with 0.1% monthly interest and a credit line of 10,000 baht per person.
Out of 2 million applicants, the bank has called 446,356 applicants to enter into loan contracts, with total loans worth 4.2 billion baht.