Local administrative units overseeing 194 pawnshops across the country have cash reserves of Bt700 million for the first semester and will offer interest rates of between 0.75 and 1.25 per cent a month, said Sarote Katchamat, director of the Interior Ministry's Local Administration Department.

Sarote said the reserves would be enough to help parents who needed cash to pay for their children's school uniforms and fees.

Sarote Jintanapanya, director of a pawnshop in Phatthalung's Muang district, said the shop had reserved Bt10 million for parents of students.

"Gold, electrical equipment and agricultural tools remain the most popular things brought in by parents who need money for their children's school uniforms and other school things," he said.

The number of people using the state-owned pawnshop in Buri Ram's Muang district had doubled to about 400 to 500 a day, and it lent out up to Bt3 million a day, an official said. The pawnshop has about Bt17 million in cash on hand and Bt80 million more in a fund for the entire year, the official said.

The rising cost of fuel would likely spark a rush to pawnshops this year, he said.

The state-owned pawnshop in Rayong's Muang district had to borrow Bt10 million from the municipality because its Bt5 million cash reserves were insufficient to cover demand from parents needing money to send their children to school.

Non-bank personal loan providers have launched promotions for parents who need money to send their children to school. Among these is KTC, which has joined with department stores to launch a campaign to provide personal loans to parents this month.