The Thai government plans to issue credit cards to farmers as of
1 November.
Thailand’s Bank for Agriculture and Agricultural Co-operatives
(BAAC) had previously set up a committee agreed to the plans.
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The BAAC’s committee has agreed to authorise a service provider
with a budget of THB1bn ($33.3m) over three years. The plan is to
issue 3 million credit cards
For authentication purposes, there will be a smart card
system.
The committee is now looking for the right service provider to
roll out the credit card system.
The credit cards will be limited in that the payments on these
cards will have to relate to agricultural goods bought from
BAAC-affiliates, a number that currently spans 3,000.
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By GlobalDataThere will be a 70% loan limit depending on the value of the
products that a farmer will sell. The card will have a 7% interest
rate unless the government subsidises the card, in which case there
will be zero interest rate.
Other features of the farmers credit card include:
- 30-day interest free period
- Free life insurance for up to THB100,000
- Emergency cash loans for up to THB10,000
A cash-withrdawal service will be added on the card later
on.
No laws protecting credit card customers
In July, Thailand’s opposition Democrat Party said it would
submit three draft laws that call for legalised debts, credit
information and credit cards.
Currently there are no laws protecting credit card customers,
claimed the party’s spokesperson.
The draft laws seek the establishment of an independent
organisation which will oversee the debts of cardholders and allow
them to complain if issuers use illegal measures to demand debt
payment.
There would also be a limit on the number of cards held by each
cardholder. The number of credit cards in use increased by 995,763
as of end of January, according to the central bank.
