Bangkok: The Bank for Agriculture and Agricultural Cooperatives (BAAC) has unveiled a new initiative called the "Kaset Wiwat Loan," designed to support individuals approaching retirement in transitioning to agricultural careers. This loan scheme aims to provide up to 8 million baht per applicant to facilitate the purchase of land for parallel farming activities, aiding the nation's shift into an aging society.
According to Thai News Agency, the Kaset Wiwat Loan targets government and private sector employees aged 50-59 with regular incomes, offering a substantial credit line totaling 37.5 billion baht. This initiative is part of BAAC's broader strategy to reintegrate people into the agricultural sector, enabling them to generate parallel income through farming and agriculture-related activities. The program emphasizes the incorporation of technology and innovation to elevate agricultural products to high-value commodities, while also addressing environmental concerns such as global warming and PM 2.5 dust pollution.
Mr. Chatchai Sirilai, President of BAAC, explained that the project is aimed at assisting those with monthly incomes in planning for supplementary income before and after retirement through farming or related careers. The loan can be used to purchase agricultural land up to 20 rai, with a maximum loan amount of 8 million baht per individual. Borrowers are required to deposit their income into an account for monthly debt payments and must have a business or agricultural plan ready to execute within three months of receiving the loan.
The loan offers an interest rate of MRR - 2 per year (currently set at 4.725% per year) for the first five years, after which it will adjust to the standard MRR rate. The repayment term is capped at 20 years from the loan date. The initiative also aims to boost local economies by providing employment opportunities in farming to nearby community members, thereby enhancing financial circulation within the community.
Interested parties can apply for the loan at any BAAC branch across the nation, with approvals available until March 31, 2029. Additional information can be obtained by contacting BAAC's Call Center at 02 555 0555.