Chart Thai Pattana unveils new loan scheme

The Chart Thai Pattana Party today unveiled a programme called "100 Baht / 100 Days", whereby self-employed and low income earners can tap personal loans upto Bt100,000.

Pradit Phataraprasit, a leading member of the party, said that under this programme, income earners with repayment disciplines are qualified for upto Bt100,000 personal loans, even if they do not have the salary slips traditionally required for loans provided by banks or by credit card issuers.

"The lack of a payslip is a serious obstacle to borrowing for the self-employed or those who earn much of their income informally, like waiters, hairdressers, spa masseuses, street vendors, market stallholders, noodle-stand vendors, tuk-tuk drivers, taxi drivers, motorcycle taxi drivers, hair dressers, and countless other small service providers," he said.

According to Mr. Pradit, under the scheme, potential borrowers are required to deposit Bt100 for 100 days in a designated account, and, at the end of 100 days they will qualify for a Bt100,000 loan. The loan will then be paid off by the borrower paying Bt200 a day for the following two years.

"It's that simple. Have the discipline to save Bt100 for 100 days, regularly, and we will get you into the banking system so that you can enjoy the benefits that virtually every other citizen with a regular income already enjoys - that of access to fairly priced credit," said Pradit.

He added, "But you won't get a loan if you have no job and no income, or no discipline in keeping your regular payment promises. We're not handing out money. We are giving it only to working people who are already earning an honest living and who can afford to pay back, but just can't prove it through salary records."

Borrowers are also offered the option of smaller loans.

"If you want to borrow Bt50,000 then you are required to deposit only 50 baht for 100 days, and you can pay off your debt over the next two years by paying Bt100 a day," he said.