InfoQuest (April 01, 2020) - Mr. Chainarong Katchapanan, manager of the Student Loan Fund, noted that Covid-19 has exerted wide impacts on economy, and in order to help borrowers cope with livelihood difficulties, the Fund will take the following measures:
1. For borrowers who have not been sued and cannot repay debts on schedule, the default interest will be reduced from 7.5 percent to 0.5 percent. From April 1 to December 31, 2020, the Fund will lower default interest from 7.5 percent to 0.5 percent for borrowers on installment repayment.
2. Salary deduction will be reduced to 10 baht per person per month. From April 1 to June 30, 2020, the salary amount deducted by private enterprises, as dictated by the Fund, for the repayment of fund loan will be lowered to 10 baht per borrower per month.
3. For all borrowers with overdue payments who plan to pay off the debts in a lump sum, the default interest will be cut by 80 percent; borrowers who have not been sued can contact Krung Thai Bank or Islamic Bank of Thailand to handle debt repayments. Borrowers who have been sued can apply for such rights and interests at the website of the Fund, and borrowers have to pay corresponding attorney fees and court fees before paying off the debts. The deadline for the service will be extended from the previous February 29, 2020 to September 30, 2020.
4. For borrowers who have not been sued and plan to pay off all debts to return to normal status (no overdue debts), the default interest will be cut by 75 percent; they can contact Krung Thai Bank or Islamic Bank of Thailand to handle debt repayments. The deadline for the service will be extended from the previous February 29, 2020 to September 30, 2020.
5. Borrowers with national welfare cards can suspend debt payments for two years. Borrowers who have not been sued can get a grace according to corresponding conditions, including those on annual instalments. From the date when the Fund approves, debt repayment of 2020 will enjoy a two-year grace period, and borrowers should repay debts of 2020 prior to July 5, 2022, and repayment of the rest debts can be postponed. Borrowers on monthly instalments can get a 24-month grace period from the day when the Fund approves.
During the period when the repayment of those debts is suspended, borrowers will not be deemed as default; no interest, default interest, or handling charge will occur on previous outstanding debts and current debts with grace period until the suspended repayment ends. The deadline of applying for the above-mentioned rights and interest via the website of the Fund will be extended from the previous February 29, 2020 to May 31, 2020.
6. For borrowers with no overdue records and have to apply for grace with good reasons, they should apply for grace and submit relevant evidence documents at least 60 days prior to due date (July 5); for specific details, please refer to the previous notice of the Fund, including:
For borrowers with no income or monthly income no more than 8,008 baht, they can get grace for two times since the Fund approves, and the maximum of grace period is one year. Within grace period, borrowers do not need to repay principal and interest, and are exempted from paying overdue penalty interest.
For borrowers with declining income, they can apply for a grace period 1.5-2.5 times of the remaining repayment period stipulated in their original loan contracts, and the specific period should hinge on the amount of remaining outstanding debt. When repaying the last instalment, the age of borrowers should not be over 60; borrowers should sign agreement with the Fund, and re-calculate average monthly payment within grace period based on the amount of remaining outstanding debt.
7. The public auction of properties of borrowers and/or mortgagers that have been confiscated by the Fund should be suspended. With the written consent of borrowers and/or mortgagers whose properties have been confiscated, and stakeholders, such as co-owner and mortgagee (if any), the Fund will apply to postpone public auction of properties to the end of 2020.
8. The execution of the prosecution cases of borrowers and/or mortgagers will be postponed, except cases about to expire and those the Fund have to execute according to law; but public auction of properties should be suspended.
Source: InfoQuest, by Kasamarporn Kittisamphan/ Rachada, translated by Xinhua Silk Road
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