Prime Minister Anutin Charnvirakul has approved a 4.45-billion-baht programme to provide cheaper financing to grassroots communities and reduce their reliance on high-interest informal loans.
Mr Anutin presided over the launch of the “Thais Help Thais: Increased Capital, Half-and-Half Interest” programme at Government House yesterday, joined by Prime Minister’s Office Minister Suksomruay Wantaneeyakul, who is the chairwoman of the National Village and Urban Community Fund Committee.
Mr Anutin said the programme aimed to ease household expenses and debt while helping people access capital to develop their occupations and generate additional income through local funds.
The programme will provide additional capital to 79,610 village, urban community and military community funds nationwide. The money will be used as working capital for occupations and other income-generating activities.
He said the scheme was part of the government’s broader effort to expand access to formal credit at affordable interest rates.
People unable to obtain financing through banks often turn to informal lenders charging excessive interest, putting their homes, land and livelihoods at risk, he said.
Mr Anutin said village funds could also help members develop businesses and create sustainable income.
Ms Suksomruay said the scheme was particularly important amid difficult economic conditions, as low-income communities needed additional working capital to maintain production, expand businesses and generate income.