Thailand clarifies ‘Thai Help Thai’ fund allocation mechanism

The Thai government has clarified that the ‘Thai Help Thai: Increase Capital, Half Interest’ project is not a direct cash handout to individual citizens. Instead, the initiative aims to increase access to formal credit and reduce reliance on informal debt by allocating capital through registered legal entities.

Deputy Government Spokesperson Lalida Periswiwatana explained that the 4,452 million baht budget will be distributed through village, urban community, and military community funds. The program covers 79,610 funds nationwide, impacting a member base of over 12 million people.

Under the program mechanism, funds must apply to participate. Once approved, the funds must reduce the interest rate on ‘Account 1’ loans for their members by at least half of the current contract rate. The government then provides additional capital to the fund based on the total amount of interest reduced for members. The allocated capital per fund ranges from 30,000 to 150,000 baht, depending on the scale of the interest reduction provided.