Bangkok: The Government Savings Bank (GSB) has announced a strategic partnership with the Ministry of Education aimed at reducing the interest rates on teachers' loans to 3.50% per year until the end of 2027, as part of the initiative "Stepping Forward with Teachers...Helping Educators Achieve Financial Independence."
According to Thai News Agency, the initiative, formally announced by Mr. Prasert Chantarawong, Minister of Education, and Mr. Songpol Cheevapanyaroj, Director of the GSB, seeks to alleviate the financial burden of teachers and educational personnel. The program targets borrowers under the Teachers' Welfare Loan Program (Ch.P.K. - Ch.P.S.) and the Educational Professionals Support Program, specifically those with a good repayment history who meet specific criteria, such as not being subject to legal action and having contracts that do not expire in 2026. Eligible participants will enjoy reduced interest rates until December 2027, with rates reverting to MLR/MRR - 2% from January 2028.
Mr. Songpol Cheevapanyaroj emphasized the GSB's commitment to reducing the financial strain on the public, with a focus on teachers and educational staff. Over 280,000 teacher and educational personnel accounts currently carry outstanding debt under the loan programs from 2005 to 2015. The interest rate reduction from 4% to 3.50% aims to enhance financial discipline and expedite debt repayment. By maintaining the same payment amount, the reduced interest allows a larger portion of payments to go towards the principal, thereby shortening the loan term and accelerating financial independence for educators.
Additionally, the GSB is offering options for teachers with overdue payments to restructure their debt under certain conditions, allowing them to participate in the program. The bank will notify eligible borrowers via SMS, letters, and app notifications. Participants are divided into two groups: debtors in good standing and those needing debt restructuring. Good-standing borrowers can register through various channels until October 31, 2026, and those needing to restructure must contact the bank and meet specific conditions by December 2026 to benefit from the interest rate reduction.
Eligible borrowers will be informed through a phased notification process, ensuring they have ample opportunity to take advantage of the program, which ultimately aims to support educators in achieving financial stability and independence.