Loans to Help Start New Small Businesses in Thailand.

Byline: Wichit Sirithaveeporn

Nov. 1--A new government loan programme for the unemployed to start their own businesses will offer up to 100,000 baht in funds at interest rates of about 10.5 percent, according to Varathep Ratanakorn, a deputy finance minister.

He said the programme would carry interest at the minimum lending rate plus 3.5 percentage points and was aimed at complementing job training programmes set up under the government's 58-billion-baht emergency economic stimulus programme.

Loan applicants must be at least 20 years old and be no older than 60 at the time the loan matures. Either assets or personal guarantees can be used as collateral.

The Government Savings Bank hopes that new entrepreneurs can use the funds to develop small and medium-sized enterprises, giving them access to additional financial support at rates as low as 6 percent.

The government has sharply increased financial help at community level in recent months through programmes such as the People's Bank and village investment funds.

The People's Bank, a microfinance programme run through the GSB, recently increased loan amounts to a maximum of 50,000 baht from 30,000 for subsequent applications, although initial loans remained capped at 15,000 baht.