Bank Cuts Teacher Loan Rates to 3.5% to Clear 280,000 Debts
The Government Savings Bank cut interest rates on teacher loans to 3.5% annually, allowing 280,000 borrowers to pay down principal faster while keeping monthly payments unchanged through December 2025. The move aims to ease financial pressu
The Government Savings Bank is partnering with the Ministry of Education on a major teacher debt-relief measure, reducing interest rates for borrowers in good standing from the civil servant welfare loan scheme to 3.50% annually through December 2025. Monthly payments remain the same, but the interest savings now go toward faster principal reduction. Borrowers with payment problems can restructure their debt to re-enter the rate-cut program.
Bank Director Songpol Cheevapoonyarojanin said the current economic climate is squeezing household finances while household debt remains high, making teacher support a priority. Around 280,000 teacher borrowers from loans issued between 2005 and 2015 still carry outstanding balances. The new rate—down from 4%—is lower than credit union rates. Monthly installments stay the same, but more of each payment now goes to principal, shortening the debt period and accelerating financial freedom.
The bank also allows borrowers with payment histories to restructure debt and qualify for the program. The bank has previously helped over 140,000 teachers close accounts, clearing about 120 billion baht in debt through cooperative loans, early payoff options, rate cuts, and legal process delays. Future plans include similar relief measures for other borrower groups. Qualifying borrowers will be notified by SMS, mail, and the MyMo app.
