How to makenano-financing work for Thais: include saving

The Finance Ministry has plans for a “nano-finance” service to eradicate loan sharks after banks expressed concern that the other alternative – micro-credit – is not viable. Given the scale of the loan-shark problem, if this measure fails, many of those in debt will give up hope.
To improve the chances of success for nano-finance, the Finance Ministry should take lessons from micro-credit schemes operating elsewhere. Current proposals for nano-finance – reducing the maximum loan from Bt200,000 to Bt100,000-Bt120,000, increasing the interest rates from 28 per cent per annum to 30-36 per cent, and permitting lenders from outside the banking sector – might not be enough to ensure its success in Thailand.
A condition that borrowers also deposit a little in savings could, however, improve its chances. Of course, this would seem like a burden to borrowers. But we know from examples such as health insurance that small contributions of a few baht per day can lower unnecessary expenses and lead to big savings in the long run.  
The success of nano-financing depends not just on borrowers getting easier and cheaper access to funding, but also on how it helps sustain them over the long term in earning their living.
Sutipunt Bongsununt