The Student Loan Fund (SLF) in Thailand, managed by Chainarong Katchapanan, announced plans to extend its mortgage services to all working-age adults, aged between 18 and 65. The transfer, geared toward upskilling and reskilling, is in response to Thailand’s shift towards an ageing society.
This initiative shall be carried out by the top of this yr, marking the primary time since its institution in 1996 that the fund has expanded its attain beyond formal instructional institutions.
The determination aligns with the policy to broaden academic opportunities as outlined in the revised Student Loan Fund Act of 2023. Furthermore, around 200 establishments that present nursing care education, one other important want in an ageing society, are expected to learn from this mortgage scheme by the year-end.
The mortgage quantity shall be restricted to 50,000 baht per borrower, targeting approximately 2,000 individuals. The reorientation of the fund is attributed to its recognition of non-formal academic establishments, similar to vocational institutes, which supply essential quick programs of as much as one hundred fifty hours for workforce upskilling or reskilling. Short-course research programmes embody hotel administration, underwater welding, and spa remedy, in addition to caregiving.
Students in search of a mortgage should enrol in a examine programme, not exceeding one yr, at a non-formal academic establishment accredited by the Office of the Private Education Commission. The mortgage has a two-year grace period, followed by a two-year debt repayment requirement.
For a two-year reimbursement interval on a mortgage amount of fifty,000 baht, the monthly instalment averages out to 2,000 baht. As per the amended SLF regulation, the fantastic for late funds has been reduced from 7.5% yearly to 0.5%, whereas the interest on the loan remains capped at 1%. This fee is considered the lowest in the domestic financial system.
Outstanding loans
To date, the fund has lent a total of seven hundred billion baht to 6.2 million students. Outstanding loans amount to 350 billion baht from 350,000 borrowers. However, roughly ninety billion baht, which accounts for almost 30% of the excellent loan stability, has not been repaid by the due date.
For the 2023 academic yr, the fund has increased the mortgage limit to 46.1 billion baht from forty.7 billion, an increase of 13% to help the growing demand for pupil loans. The number of students receiving loans has risen by 117,000 to 760,000.
As of September 12, debt compensation totalled 25.7 billion baht. The fund is within the strategy of drafting a contract for dispute settlement and debt restructuring for both “pre-sue” and “post-sue” debtors, which is predicted to be finalised by the tip of this year.
Previously, the Fiscal Policy Office reported that Thailand grew to become an ageing society in 2005, with a minimal of 10% of the population aged 60 or older.
In 2019, the older inhabitants surpassed the younger population for the first time. With a gradual inhabitants development rate of 0.5% per yr and an increased average lifespan of 76 years, Thailand is projected to turn into an “aged” society both this year or subsequent, the place those aged 60 and older will represent 20% of the population.
By 2034, the nation is expected to transition into a “super-aged” society, with the older population accounting for 28%, reported Bangkok Post.
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