Police to launch operation to crack down loan sharks

BANGKOK, March 31 (TNA) – The police will launch an operation to crack down loan sharks from April 1-10 across the country while the government has urged informal lenders to register for the pico-finance’s licences to be legitimate lenders. Pol Gen Chalermkiart Srivorakhan, deputy national police chief today told a press conference about the measures to eliminate loan sharks that the authorities plan to seize assets of loan sharks under the Anti -Money Laundering Law. The government is now giving opportunities for informal lenders to register as pico-finance operators. They are required to have 5 million baht in registered capital and can lend up to 50,000 baht per borrower with interest rates capped at 36% a year. To apply for the pico-finance’s license, they must never been charged or filed complaints against for loan sharks and they must not use violence to force borrowers to return debts. So far, about 150 informal lenders have registered for the pico-finance operation to provide small loans, mainly needed by households and individuals. The establishment of the so-called pico-finance operation is the government’s initiative to support low-income borrowers to gain access to capital with fair interest rates and to solve the underground debt problems (TNA)