Pico Finance is multi-purpose loan and its credit limit is within 50,000 Baht. It is a minor personal loan that the creditors in charge of Pico Finance can provide it to the people who have house registration, live or work in the provinces where the headquarters are located. Pico Finance is administrated by the Ministry of Finance and designed to address the country’s underground debt problems. The creditors must control the interest, fines, service charges not over 36% / year.
To be a Pico Finance creditor, the loaner must be a juristic person with capital registration not less than 5 Million Baht and is allowed by the Ministry of Finance to do loan business legally in the local area. It will help calculate risk assessment of the local borrower’s repayment capability. Additionally, the creditor can upgrade the interest to be higher than other financial institutions while the borrowers can borrow standard loan more easily for their necessity with or without a guarantor.
Although the interest rate is higher than other financial institutions, but it is surely not higher than non-standard loan system. The process is also simple and aimed for reducing problem of long, never-ending installment to help people clear out their debt within time frame.
Nowadays, the amount of debt exceeded 100,000 Billion Baht. Previously, the Government Savings Bank and Bank for Agriculture have been in charge of solving non-standard loan problem by organizing a particular sector to take care of it until Pico Finance has officially been launched on December 1, 2018 to help form and mark reputation of the official Government standard loan system.
Pico Finance is a part of the Government project to reducing non-standard debt.though its credit limit is within 50,000 Baht, it is effective enough to help people clear up some of their debts. However, it is good to keep in mind that all financial problems will be gone if we have a strong self-discipline every time we spend money.