Thailand to lower Student Loan Fund interest rate to ease burden on borrowers

Krisada said the fund amending bill will set the fund’s new interest rate at a maximum of 2% as the bill passed its first reading in the House of Representatives, and the second and third readings should take place this year.

The government plans to reduce the interest rate on the Student Loan Fund to ease the burden on borrowers.

According to Permanent Secretary for Finance Krisada Chinavicharana, the fund amendment bill will set the fund’s new interest rate at a maximum of 2%. The bill passed the first reading in the House of Representatives, and the second and third readings are expected to take place this year.

The Finance Secretary also clarified the fund’s interest rates and fines, saying the 7.5% fines rate is due to borrowers failing to repay their debts for an extended period of time, resulting in cumulative penalties. He urged borrowers who are having difficulty repaying to contact the fund in order to find a way to settle the debt without going to court, which would result in these fines.

The fund has already cut the interest rate to 0.01% to ease the burden on borrowers during the Covid-19 pandemic. The interest rate will be in effect until the end of the year.


Since its inception, the fund has provided 6.21 million people with loans totaling 692 billion baht. Repayments totaling 114 billion baht were made by about 1.56 million people. 3.52 million borrowers are currently repaying loans totaling 450 billion baht. Meanwhile, more than one million people with a total loan of 121 billion baht are currently in a repayment grace period.

The fund expects debt repayment of 32 billion baht in 2022. (NNT)


Comments are closed.