Thai Bank Opens Credit Line for Street Vendors
The Government Savings Bank launched a new credit program for street vendors and informal merchants using AI technology to assess loan eligibility based on mobile payment transaction history rather than formal financial records, offering up
The Government Savings Bank is rolling out the Omsin QR Maha Heng x Nok Krasib credit product to support small merchants and informal vendors under the Thailand Helps Thailand Plus initiative, with maximum loan amounts of 50,000 baht per person. According to Songpol Cheewaponjaroonchai, managing director of the Government Savings Bank, the new scheme combines artificial intelligence technology called Nok Krasib—which analyzes and summarizes sales data—with lending decisions that rely on actual transaction histories through the Thanun mobile payment app. This approach eliminates barriers for informal vendors who lack formal financial statements or accounting records, allowing their real trading cash flow to support credit applications.
Eligible vendors must have monthly sales of at least 10,000 baht through the Thanun app for three consecutive months. They can borrow up to 50,000 baht or 1.5 times their average monthly sales, whichever is lower, at a fixed interest rate of 0.75 percent per month (16.20 percent annually). No collateral is required, and loans are structured as short-term credit matching vendors' trading cycles. Registration runs from September 24 to October 31, 2024, with loan approvals beginning October 1, 2024. The bank also offers lower-rate loans for vendors seeking long-term capital or business expansion.
