Interest Rate Improvement

With the Minister of Finance signing the Ministry of Finance’s announcement. This for businesses that must request permission in accordance with Section 5 of the Revolutionary Council Announcement No. 58 (Regarding Provincial Microfinance Under Supervision) (No. 2) dated September 9, 2021.

Likewise this announcement aims to adjust the interest rate ceiling, profit rate from lending, default interest, fines as well as the service fees. In addition, all other fees for provincial-level microfinance business operations under supervision (Pico Finance Loan). This to reduce the burden and provide assistance to debtors affected by the COVID-19 outbreak. This will come into effect from October 1, 2021 onwards. Details are provided in the attached document or via the QR code.

The Fiscal Policy Office (FPO). This as the agency assigned by the Ministry of Finance to supervise the operation of the Pico Finance business. They would like to submit the announcement of the Ministry of Finance and inform all Pico Finance business operators and relevant parties of the important details as follows:

Set the Interest Rate Ceiling:

Likewise the profit rates from lending, interest on default payments, fines as well as service fees. Again with any other fees are the new rates for Pico Finance business operations as follows:

Pico Finance Loan:

Amount not more than 50,000 baht:

• The current ceiling rate: 36 percent per year
• Then there is the improved ceiling rate: 33 percent per year

Amount 50,001 – 100,000 baht:

• The current ceiling rate with guarantee: 28 percent per year
• Then there is the improved ceiling rate with guarantee: 28 percent per year
• The current ceiling rate without collateral: 28 percent per year
• Then there is the improved ceiling rate without collateral: 28 percent per year

Additionally

2. Reducing the interest rate ceiling Profit rate from lending Interest on default payments, fines,
service fees, or any other fees. According to the announcement of the Ministry of Finance. Lastly this specified in item 1 above shall be effective. From 1 October 2021 onwards

3. In the case of a Pico Finance business operator who has entered into a loan contract that stipulates. The payment period has been clearly stated before the announcement of the Ministry of Finance comes into effect (October 1, 2021). Likewise, allowing business operators to collect interest. Profit rate from lending Default interest, fines, service fees, or any other fees. This at the original rate specified in the contract or agreement until the said debt is completely repaid.

4. FPO asks business operators to send announcements detailing interest. Likewise the profit rates from lending, default interest, fines as well as the service fees, or any other fees. In addition, expenses as actually paid and reasonable reasons regarding Pico Finance loans. According to the form shown in QR code 2 to notify the interest rate.

Likewise the profit rate from lending Interest on default payments, fines, service fees, or any other fees. and expenses. Lastly as actually and reasonably paid regarding the Pico Finance loan at the rate that has been adjusted. This according to Announcement from the Ministry of Finance to the FPO before October 1, 2021 as well.

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