Thai Government Extends Financial Aid Reach to Accommodate 2 Million Citizens
The "You Fight, We Help" debt relief program in Thailand has undergone an expansion, aiming to provide relief to over 2 million borrowers with outstanding debts totaling approximately 310 billion baht. The extended program, which will run until September 30, 2025, targets individuals who are in arrears for as little as 1 day and those overdue more than 365 days, including those who have previously restructured their debts [1][3][4].
Key updates to the program's eligibility and limits include:
- Mortgage loans, hire-purchase or car-title loans, and SME loans will continue to be covered, with loan limits remaining the same: mortgage loans below THB 5 million per institution, hire-purchase or car-title loans under THB 800,000, and SME loans under THB 5 million [1][4].
- The "Pay-Off, Close Case" policy now covers unsecured debts up to THB 10,000 and secured debts up to THB 30,000, with an option to settle immediately by paying only 10% of the outstanding amount [1][4].
- A new initiative converts non-performing unsecured loans below THB 50,000 per account into structured term loans with a minimum monthly repayment of 2% over three years; borrowers adhering to terms receive a full interest waiver after the term [1][4].
A summary of the updated program features and their updated eligibility/limits is provided in the table below:
| Program Feature | Updated Eligibility/Limit | |----------------------------------------|--------------------------------------------| | Payment arrears eligibility | 1 day overdue to over 365 days (including restructured debts overdue 1-30 days) | | Mortgage loans | Loans below THB 5 million per institution | | Hire-purchase/car-title loans | Under THB 800,000 | | SME loans | Under THB 5 million | | Pay-Off, Close Case unsecured debts | Up to THB 10,000, settlement at 10% payoff| | Pay-Off, Close Case secured debts | Up to THB 30,000, settlement at 10% payoff| | NPL unsecured debt conversion | Loans below THB 50,000 per account, 2% monthly repayment over 3 years, full interest waiver upon completion |
This program expansion is expected to provide relief to approximately 2 million additional accounts and cover an outstanding debt amount of about THB 310 billion, part of a total eligible debt pool of THB 890 billion [2][4]. The coverage remains unchanged across four loan categories: residential property, vehicle hire-purchase, title loans, motorcycle hire-purchase, and SME business loans.
Interest charges are waived entirely if borrowers meet all conditions throughout the three-year period. Immediate interest waivers are offered for compliant borrowers in this program. Unsecured loans covered in this program have an outstanding debt limit of 10,000 baht, and secured loans covered in this program have an outstanding debt limit of 30,000 baht.
It is important to note that this program does not cover secured loans with outstanding debt exceeding 30,000 baht and does not affect the earlier mentioned measures such as "Pay on Time, Keep Assets" and the extended registration deadline. Borrowers can close accounts by paying just 10% of the outstanding balance under this measure.
The expansion of the "You Fight, We Help" debt relief program is expected to reduce financial pressure on 1.8 million Thais and contribute to the economic recovery by unlocking 310 billion baht in outstanding debt to boost consumer spending [2][3].
- The expanded "You Fight, We Help" debt relief program in Thailand, set to run until 2025, aims to provide relief not only to individual borrowers but also to small and medium businesses struggling with debts.
- The revised program offers significant benefits to both business owners and tourists, as it covers a range of loans including mortgage, hire-purchase or car-title, and SME loans, totaling approximately 310 billion baht.
- The economic recovery in Thailand is expected to receive a boost from the debt relief program, as it unlocks over 310 billion baht in outstanding debts, potentially increasing consumer spending in sectors such as tourism and business, thereby stimulating the overall economy.
