Nano-finance regulations approved
The BANK of Thailand and the Finance Ministry have approved the regulations for offering nano-finance.
Ronadol Numnonda, an assistant governor of the central bank, said yesterday that the ministry would issue permits to non-bank institutions to offer nano-finance to customers, while the BOT would make the regulations and monitor the conditions of the scheme.
Commercial banks and registered financial institutions can begin offering the service immediately.
Operators wishing to get into the business need to show a minimum of Bt50 million in registered capital.
The law governing nano-finance went into effect on Saturday.
Nano-finance is a loan that can be extended to an individual seeking to borrow up to Bt100,000 without collateral to use for business operations.
The effective cost of the loan, including interest, fees and penalties, should not exceed 36 per cent per year.
Thitikorn said it would apply for a nano-finance permit from the central bank soon. The lender believes that the scheme will increase its revenue from the expected increase in outstanding loans this year due to the economic recovery.
It is not worried about non-performing loans since it already gives weight to the quality of its customers.
TK mainly provides motorcycle loans. It expects the motorbike industry to expand by 3-5 per cent this year.
