GSB prepares B5 billion for the unemployed
Loans aim to employ 100,000 people
People line up for services outside the Tao Poon branch of the Government Savings Bank during the pandemic. Nutthawat wicheanbut
The Government Savings Bank (GSB) plans to launch a subsidized loan program worth 5 billion baht to help the unemployed next month, aimed at creating 100,000 jobs, said chief executive officer Vitai Ratanakorn.
Loan targets include people made redundant after businesses or factories shut down due to the protracted pandemic.
The bank plans to offer soft loans in the range of 30,000 to 100,000 baht per borrower, depending on their investment plans.
The program is expected to help create jobs for 100,000 people, Vitai said.
To qualify for the loan, borrowers must attend GSB vocational training courses.
The bank offers courses for on-demand career candidates, such as barber or electrician.
Some people might want to buy a franchise license or open a cafe in their community, he said.
Mr. Vitai said that GSB has asked the Ministry of Finance to consider subsidizing non-performing loans under this program.
Financial institutions generally do not lend to the unemployed to avoid the high risk of default.
The subsidized loan also meets GSB’s obligation as a “social bank”, he said.
Once the borrowers have a sustainable income, they should be able to repay the loan to the bank.
According to the National Statistics Office, in the second quarter of this year, unemployment stood at 2% of the total labor force of 38.8 million, or about 760,000 people.
By level of education, most of the unemployed had a bachelor’s degree.