BOT relaxes credit card minimum payment criteria – credit limits, allowing banks to help flood victims

The Bank of Thailand relaxes criteria and asks for cooperation from financial institutions and non-banks to provide assistance to debtors affected by disasters.

Aug 30, 67 Mr. Ronadon Numnon, Deputy Governor for Financial Institution Stability Bank of Thailand (BoT) It was revealed that due to many areas in the northern and upper central regions having to face flooding, causing hardship for the people and debtors in the said areas.

In order to provide assistance to financial institution debtors in urgent situations more quickly and efficiently, the BOT has relaxed the criteria and requested cooperation from financial institutions, specialized financial institutions, and non-financial retail lending operators to provide assistance to those affected as necessary and appropriate, covering affected debtors in areas declared as disaster areas or in yellow, orange, or red disaster situation levels.

With guidelines for various cases as follows:

1. Credit card loans The minimum repayment rate for affected debtors can be considered to be lower than the rate set by the Bank of Thailand for a period not exceeding 12 months from the date the area is declared a disaster area.

2. Supervised personal loans and digital personal loans The conditions of the temporary emergency credit line may be considered to be higher than the rate set by the BOT so that debtors have sufficient emergency funds to recover damages caused by disasters. The credit line must be approved as soon as possible, no later than 12 months from the date the area is declared a disaster area.

3. All types of loans Consideration can be given to providing financial and liquidity assistance to debtors to repair their homes or to enable them to continue their careers or businesses, including adjusting conditions such as reducing or waiving interest and fees, relaxing debt repayment conditions, or restructuring debts, by approving such credit limits as soon as possible, no more than 12 months from the date the area is declared a disaster area.

During the assistance period, the BOT will relax the debt classification criteria to maintain the same classification as before the disaster.

The BOT sincerely hopes that debtors affected by the disaster will receive assistance from all financial institutions and non-financial retail lenders to help them overcome the problems. Debtors can directly contact financial institutions and non-financial retail lenders that they use.

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