The cabinet yesterday gave the nod to a soft loan package worth 5 billion baht to help create jobs mainly for the unemployed.
According to government spokesman Thanakorn Wangboonkongchana, the soft loan package to be extended by state-owned Government Savings Bank (GSB) will be offered mainly to business starters and small-scale business operators such as masons, air-conditioner repair providers, electricians and beauty shops; small-scale operators who have their exact distribution locations such as wholesalers, retailers, and franchisees; and public vehicle drivers of vehicles such as taxis, taxi vans and truck services.
"This lending facility will help those people and business operators to have the initial capital to do business or aid their financial liquidity to be able to continue their business, and reduce their reliance on loan sharks or informal lenders," said Mr Thanakorn.
The five-year lending scheme carrying an interest rate of 3.99% a year will run until Sept 30, 2022, offering not more than 300,000 baht to each borrower.
A grace period for principal and interest will be offered for the first six repayments.
Mr Thanakorn said that the cabinet yesterday also approved 1.5 billion baht to subsidise non-performing loans under this programme.
To qualify for a loan, borrowers must take part in career training courses offered by the GSB.
Participation in the career training courses will enable borrowers to generate more income.
According to Mr Thanakorn, the bank also plans to return 10% of the annual interest rate to good debtors and those with a good repayment record for three years.
In a separate development, deputy government spokeswoman Traisulee Traisoranakul said the cabinet yesterday also approved corporate income tax exemption on the sales revenue of employers who participate in the government's co-payment subsidy scheme.
The cabinet approved on Oct 19 the payment worth 37.52 billion baht to help small and medium enterprises (SMEs) retain employees.
Under the scheme, the state provides a 3,000-baht subsidy to assist with the monthly pay of each employee for three consecutive months starting from October. The same subsidy will also be offered to owners of SMEs that recruit new employees for two straight months.
Participants were required to register to participate in the subsidy scheme in the first round between Oct 20 and Nov 20.
According to Ms Traisulee, the cabinet also approved the second round of the registration for SMEs between Nov 20 and Dec 20.