Bangkok: The Bank for Agriculture and Agricultural Cooperatives (BAAC) has announced a reduction in its loan interest rates by up to 0.25 percent per year. This adjustment is part of an effort to support SME entrepreneurs, maintaining the Middle East Rate (MOR) at 6.125 percent per year and the Minimum Lending Rate (MLR) at 6.025 percent per year. These changes will be effective from January 1, 2026.

According to Thai News Agency, the Manager of BAAC, Mr. Chatchai Sirilai, explained that this decision follows the Monetary Policy Committee’s reduction of the policy interest rate by 0.25 percentage points, bringing it down from 1.50 percent to 1.25 percent per year. BAAC, as a specialized state financial institution, is aligning its interest rates with the policy direction and the government’s focus on sustainable debt resolution.

Furthermore, BAAC has been actively implementing comprehensive debt management strategies for its farmer customers. Among these measures is a government-backed debt moratorium for small-scale farmers, which has reached 1.35 million participants in Phase 3, amounting to over 203 billion baht in principal. The bank has also introduced vocational rehabilitation programs to help participants reduce costs and boost income.

In addition, BAAC offers low-interest loans to support the liquidity and operational needs of small-scale farmers and agricultural entrepreneurs. These initiatives include the “Thank You Loan,” the “Ten Thousand Baht Quick Loan” for Village Health Volunteers and Assistants, with a loan cap of up to 100,000 baht per person at a monthly interest rate of 0.50%, and the “Agricultural Development Loan,” which provides an interest rate of MRR – 2% per annum for the first five years to foster additional income alongside agricultural activities.