Bangkok, 22 Oct – BAAC cuts interest rates on loans by up to 0.25 percent and freezes deposit rates to promote savings discipline.

BAAC announces a reduction in the MRR and MOR loan interest rates by up to 0.25 percent in line with market trends to reduce the burden of interest expenses for BAAC farmer customers and support economic recovery by reducing the interest rate for prime retail customers (MRR) for general customers by 0.10 percent to 6.875 percent per year and for vulnerable groups and SMEs experiencing production problems.

Including NPLs debtors that are undergoing debt restructuring, which will be reduced by 0.25 percent to 6.725 percent per year until the end of fiscal year 2024 (March 2025), and the interest rate for overdraft customers (MOR) will be reduced to 6.875 percent per year, effective from November 1, 2024 onwards, while the deposit interest rate will be fixed at the same level to promote savings discipline for customers.

Mr. Chatchai Sirilai, President of the Bank for Agriculture a
nd Agricultural Cooperatives (BAAC), said that according to the resolution of the Monetary Policy Committee (MPC) to reduce the policy interest rate by 0.25 percent per year from 2.50 percent per year to 2.25 percent per year, BAAC, as a specialized state financial institution, plays an important role in driving the mission according to the government’s policy and developing the agricultural sector towards sustainability. It has considered reducing the loan interest rate by up to 0.25 percent per year, effective from November 1, 2024 onwards, to reduce the interest burden of BAAC farmer customers and support economic recovery, consisting of the Minimum Retail Rate (MRR) reduced by 0.10 percent per year from 6.975 percent per year to 6.875 percent per year, and in the case of vulnerable farmer groups and SMEs who have experienced production problems that have reduced their ability to repay debts, including NPLs debtors who are in the process of debt restructuring. The MRR interest rate has been reduced by 0.25
percent per year from 6.975 percent per year to 6.725 percent per year, which has been extended for another 5 months from November 1, 2024 to March 31, 2025. The overdraft interest rate (MOR) has been reduced by 0.25 percent per year from 7.125 percent per year to 6.875 percent per year. At the same time, BAAC is ready to freeze all types of deposit interest rates for as long as possible to promote savings discipline and continuously build financial immunity for customers.

BAAC is ready to support government policies in taking care of debt problems, developing the quality of life and income of farmers sustainably through various measures and products of the bank, such as the debt suspension measure for small debtors, the project of informing BAAC of debts, along with supporting low-interest capital to enhance liquidity in spending and occupations, such as the second phase of the SME Agricultural Strengthening Loan, the Than Khun Loan, and the Good People Express Loan for members of the Village Health Volunte
ers (VHVs) and the loan measure to help and support informal debts, etc. -515 Thai News Agency

Source: Thai News Agencyl