BAAC provides loans for purchase or repair of income-related motorcycles

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Bangkok – The Bank for Agriculture and Agricultural Cooperatives (BAAC) is providing credit for low-income earners to buy a motorcycle for a maximum of 80,000 baht for use as a motorcycle taxi, or to pay a maximum of 30,000 baht for bike repairs.

Assistant BAAC manager Somphop Rodklang said the income-raising motorcycle credit plan provides the opportunity for welfare card holders, farmers and others to have access to a source of finance and keep themselves well away from loan sharks. Those who may not have any collateral can still be provided with a loan to buy a bike with which they can earn a living. The Thai Credit Guarantee Corporation provides a 100% guarantee for BAAC borrowers in exchange for a maximum 2% annual fee.

BAAC borrowers are required to obtain a license to operate a motorcycle taxi in Bangkok, Pathum Thani, Nonthaburi, Nakhon Pathom, Samut Prakarn, Chonburi, or in any other province where they are registered with the Department of Land Transport or its provincial branch offices, as taxi motorcyclists.

Monthly repayments of loans are accepted over a period of no less than three years and no more than five years. The bank has prepared a total of one billion baht for the credit program which is available from now until June 30, 2020.