GSB launches cheap loans for the poor

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GSB launches cheap loans for the poor

No collateral needed for 10,000 baht loan

People receive financial services at a branch of the Government Savings Bank. (Photo: Somchai Poomlard)

The Government Savings Bank (GSB) is launching a low-interest loan that does not require collateral to help low-income people support their liquidity, bank chairman Vitai Ratanakorn said.

He said the move was in line with government policy to mitigate the prolonged impact of the pandemic on low-income people.

The loan will only be available through the bank’s MyMo mobile banking app.

Customers can borrow up to 10,000 baht with a monthly interest rate of 0.35%. The bank offered a similar package in 2020-21 during Thailand’s Covid-19 lockdowns.

The loan does not require guarantors or collateral. It offers a grace period on principal and interest payments for six months. The repayment term is a maximum of two years.

Last year, GSB launched 36 financial measures worth a total of 12 billion baht to help customers struggling with the impact of the pandemic. The initiatives potentially cover 11.6 million borrowers and include loans of 10,000 baht and 50,000 baht each.

As of December 2021, GSB had total assets of 3.04 trillion baht, deposits of 2.576 trillion baht and outstanding loans of 2.27 trillion baht. Last year, its new loans amounted to 590 billion baht and non-performing loans accounted for 2.5% of the total.

In a related matter, Finance Minister Arkhom Termpittayapaisith said the government is expected to launch new measures this week to ease people’s cost of living.

He said rising inflation remained a problem for countries around the world due to soaring oil prices. It remains to be seen whether inflation will affect the Thai economy.

The Office of Fiscal Policy has forecast Thai economic growth of 3.5-4.5% this year, at an average of 4%.

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