Rise in ceiling on flood loan
Bank of Thailand yesterday announced to raise the maximum amount of soft loan for flood-affected individuals from Bt1 million to Bt3 million, given their demand of higher credit for house repair.
The rise came into effect yesterday.
"There were complaints that the Bt1-million credit amount was too small for house repair and others damaged (by the floods)," said Suchada Kirakul, BOT deputy governor.
Earlier in February this year, the BOT has offered low-interest loans or soft loans to financial institutions in order to help them to provide loans to SMEs and individuals whose houses or workplaces were in the flooded areas.
The maximum loan amount for each SME is Bt30 million and Bt1 million for individuals, carrying an interest rate of not more than 3 per cent per year.
"We ask them (banks) about extension of the soft loans and have make review regularly. They told that the soft loan amount was too small for repair of (individual) customers' houses damaged by the floods," Suchada said.
Of total Bt300-billion budget for the soft loans, about 3 per cent or Bt10 billion were already extended to flood-hit SMEs and individuals, she noted.
