Bangkok: The Association of State Financial Institutions has taken decisive action in response to government policy by collaborating with state banks to launch three key projects aimed at assisting flood victims in the southern regions. This initiative focuses on relief, compensation, and rehabilitation to help affected individuals and communities recover from the devastating floods.
According to Thai News Agency, Ms. Ayrin Phanrit, Deputy Government Spokesperson, disclosed that the Association of State Financial Institutions and Specialized Financial Institutions (SFIs), including the Government Savings Bank, the Bank for Agriculture and Agricultural Cooperatives (BAAC), the Government Housing Bank (GHB), the Export-Import Bank of Thailand (EXIM), the Small and Medium Enterprise Development Bank (SME Bank), and the Islamic Bank of Thailand (IBOT), have introduced these projects to alleviate hardship and provide crucial support. Each project targets specific needs, from emergency liquidity to home and business renovations.
The first project, the Relief Project, involves suspending principal repayments and waiving interest for flood victims, capped at 1 million baht per individual for a duration of 12 months. This measure is designed to ease financial burdens and enable a quicker return to normalcy. Debtors holding a normal account status or undergoing debt restructuring can benefit from a 0% interest rate during this period, while maintaining their current debt status.
The Relief Loan Program aims to offer existing debtors emergency funds to support everyday expenses, career financing, or property repairs. Eligible debtors can obtain additional loans of up to 100,000 baht per person, with a 0% interest rate for the first year. The loan terms and subsequent interest rates are set by each participating bank. Applications for this program are open until March 31, 2026.
Lastly, the Rehabilitation Loan Program provides financial aid to expand or repair homes and purchase necessary equipment, or to support vocational rehabilitation. Borrowers can receive up to 1 million baht, with a 0% interest rate for the first 12 months. Similar to the other projects, loan terms and interest rates beyond the first year are bank-specific. Applications must be submitted by June 30, 2026.
Eligibility for these initiatives requires applicants to have a registered address or business in a flood-affected area, as identified by the Department of Disaster Prevention and Mitigation (DDPM), along with proof of flood impact. Each state financial institution may have additional criteria and conditions for participation.
Interested individuals can apply through mobile applications or other channels offered by the respective state financial institutions.