Micro credit in rural Thailand : the role of credit in rural dvelopment in Thailand?
This thesis examines the role of micro credit services in two villages in Phitsanulok province
in rural lower northern Thailand. The study explores access to different forms of micro credit
and how it differs from the traditional perception of rural credit in Thailand, as loans used by
rural farmers with land titles as collateral.
The Royal Thai Government is strongly encouraging all credit institutions to increase lending
to low-income households. There are a variety of micro credit services and sufficient
resources to finance a very significant increase in loans to rural households. There are
substantial funds available through the departments, organisations and institutions reviewed in
this study. However, at a micro-level, it still seemed that loans are going to wealthier
households with collateral. The greater amount of credit is allocated to the better off
households and the poor are excluded from almost all sources of informal and formal credit
The thesis points out that BAAC and GSB have a strong capital base. However, these bank
has a comprehensive network at the district level, but its operation is not as close to peasants
as sajja oomsap, or PDA. These organisations only have the constraint of small working
capital. The two types of organisation may operate in conjunction with each other, BAAC or
GSB may become the credit wholesales with sajja oomsap and Credit NGOs acting as retailer
at village level.