The BAAC Board has approved the "Half-Interest Loan" program with a 30 billion baht limit. The government subsidizes 3% interest. Borrowers can get up to 100,000 baht each. Check conditions and the 7 crop groups eligible for the program here.
Mr. Chatchai Sirilai, Manager of the Bank for Agriculture and Agricultural Cooperatives (BAAC), said the BAAC Board meeting, chaired by Deputy Prime Minister and Finance Minister Mr. Aeknithi Nitithanprapas, approved the implementation of the half-interest loan program following the Cabinet’s resolution. The program aims to elevate the agricultural sector’s potential by transitioning from traditional farming to “precision agriculture, stable agriculture, and sustainable agriculture.” It also seeks to reduce production costs, add value throughout the supply chain, and enhance Thai farmers’ competitiveness by providing low-interest loans for efficient purchase of production inputs and developing sustainable agricultural occupational skills.
Farmers wishing to join must be BAAC customers and properly registered with relevant government agricultural agencies. The detailed conditions are as follows:
This program covers farmers growing seven crop types, including:
Farmers must complete training or acquire skills in cost management and agricultural management (Reskill/Upskill) provided by BAAC, agencies under the Ministry of Agriculture and Cooperatives, or other cooperating entities. This includes efficient fertilizer use based on soil analysis. Loan funds must be used to purchase fertilizers through agricultural institutions, farmer groups, or community enterprises participating in the half-interest loan program, or other sources as specified by BAAC.
Additionally, farmers must use certified seeds or planting materials meeting standards recommended by government agencies under the Ministry of Agriculture and Cooperatives or as specified by BAAC. These must be sold to farmers at reasonable prices, with the Department of Internal Trade controlling prices according to set standards. Loan repayment must follow the schedule set by BAAC.
Borrowing farmers will receive payments for their produce through their BAAC deposit accounts and agree to allow BAAC to deduct loan repayments from these accounts. Loan amounts are capped at 100,000 baht per borrower with an interest rate of 6% per year, while the government subsidizes 3% per year if borrowers comply with program conditions. Loan repayment must not exceed 12 months, with the repayment deadline no later than 30 April 2029 GMT+7. The program duration is three years from the date of Cabinet and BAAC Board approval until 30 April 2029 GMT+7.
Read the news " Government Policy " for more details.