The Government Savings Bank (GSB) has prepared 34 billion baht to be offered as soft loans to flood victims seeking to buy new homes and rehabilitate their businesses.

GSB President and CEO Lersuk Chuladesa revealed that the bank will offer soft loans to flood victims under two categories: those seeking new homes and small and medium-sized entrepreneurs who need financial assistance.

For homebuyers to be eligible for the soft loans, their loan request must be worth not more than 3 million baht. The interest will be fixed at 3% for five years.

For SME entrepreneurs, the loans will be offered at a maximum of 30 million baht with a 3% fixed interest rate for five years as well.

Mr Lersuk said the move is a response to the Bank of Thailand (BoT)’s request for banks to help those affected by the 2011 flood devastation. He indicated that out of the 34 billion baht prepared for the soft loan scheme, 25 billion baht comes from the BoT while the other 9 billion baht comes from the GSB.

News from NNT