GSB launches cheap loan card

The people’s card will offer loans of not more than Bt30,000 at an interest rate of 1 per cent per month. Customers will be able to apply at GSB branches across the country starting from the middle of this month.
Using the card, holders can withdraw money from an ATM, with the interest charge starting immediately, Chatchai said after a visit to Chewavitee Community Enterprises on Saturday.
“We forecast that at least 80,000 customers will apply to get loans from the people’s card this year,” he said.
He added that the move was aimed at helping people obtain enough money to improve their quality of life, without falling into the hands of loan sharks.
Meanwhile, rates as part of the government’s policy, the bank is also ready to provide loans for people who have previously dealt with loan sharks that charge high interest rates.
Prime Minister Prayut Chan-o-cha has already agreed to a proposal that illegal money-lenders who charge borrowers interest rates of more than 15 per cent per year will be prosecuted.
However, lenders may apply for “Pico finance” licences, which would allow them to do business legally and charge interest rates of up to 36 per cent per year. The 36-per-cent rate is equivalent to that currently charged by lenders who have “nano finance” licences from the Finance Ministry.
For “Pico finance” licensees, target groups will be low-income people who need urgent loans of between Bt20,000 and Bt50,000.
“We are awaiting the government’s announcement about the Pico finance, then we are ready to do it,” Chatchai said.
Chatchai added that the bank also aims to support community enterprises in line with the government policy of providing loans worth up to Bt54 billion between 2015 and this year.
“This loan supports communities nationwide to boost their cash flow and expand their business,” he said.
The bank has also been running its Pink Pracha Rath community campaign that invites community enterprises across the country to submit their business models to the project’s committee, which then will select the winner of an award worth Bt500,000.
Chatchai said this is the first year of the campaign. Since the start of the year, 432 community enterprises have submitted their business models, which have now been whittled down to a shortlist of 10, with the winner to be announced at the end of this month.
“This [campaign] is part of our aim to find a business model for community enterprises that will suggest to other community enterprises how to develop their business. The bank will then provide loans at a special interest rate for them to drive their business growth. This can also improve the community’s quality of life under the GSB concept of being the ‘people’s bank’,” he said.
Chewavitee Community Enter-prises in Nan province is one of the 10 community enterprise finalists.
“If we win under the Pink Pracha Rath community award, that will help us to expand our production and distribute our products nationwide, and in time even export them,” said Chusin Senrattana, head of the Chewavitee Community Enterprises.