Financial Institutions expressed readiness to comply with measures to reduce household debt that is set to begin next year.
The Bank of Thailand will commence with persistent debt (PD) for revolving personal loans as part of the household debt settlement plan and will encourage performing loan debtors to take part in the scheme. Participants would be able to receive an annual interest rate of no more than 15%, compared to the current 25% ceiling rate for personal loan products.
PD clients will be categorized into general and severe groups. Individuals considered to be in General PD are those who have been in debt consecutively for three years, while severe PD borrowers are those who are in debt consecutively for five years, with a minimum monthly income of 20,000 baht if using a bank or 10,000 baht for non-bank users. The measures are set to go into effect on April 1,…
