The Finance Ministry of Thailand, collaborating with state banks and private partners, has successfully assisted 50,980 individuals in refinancing loans previously subjected to illegally high interest rates.

This initiative, which commenced on December 1, 2023, has seen loans worth 1.8 billion baht refinanced by the government’s special banks and cooperating financial entities.

PORNCHAI TEERAVEJ, Director General of the Fiscal Policy Office (FPO), confirmed on Saturday that the operation has been effective in helping those burdened by non-banking loans.

The Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives are among the institutions involved, having launched specific programs aimed at alleviating the financial hardships of loan shark victims.

These include a project for settling non-banking loans and a revolving fund specifically designed to support impoverished farmers.

In addition to direct financial assistance, the Finance Ministry has also succeeded in encouraging many non-banking creditors to become officially registered as pico-finance companies.

As of now, 1,148 operators have been approved to operate in 75 provinces across Thailand.

Under the pico-finance regulation, these firms can charge interest rates of no more than 36% per annum.

The Fiscal Policy Office reported that by November 2024, pico-finance entities had disbursed loans across 4,840,118 accounts, amounting to approximately 46.98 billion baht.

Individuals interested in applying for a pico-finance licence can contact the official hotline or visit the website provided to facilitate the registration process.