Bangkok, Student Loan Fund confirms that it will charge 1% interest without double interest. It recommends that borrowers pay the amount stated in the Student Loan Fund Connect App.
The Student Loan Fund (SLF) has clarified the case in which online media reported that borrowers had questions about the payment amount that appeared in the SLF Connect application and did not match the 15-year payment schedule. The fund would like to confirm that it has calculated interest at a rate of 1 percent from the beginning of the loan until the payment is complete. No double interest is calculated. Borrowers are requested to repay the debt in the amount stated through the SLF Connect application.
Mr. Chainarong Kachpanan, Manager of the Student Loan Fund (SLF), revealed that ‘In the case of online media reporting news about borrowers having doubts about the debt amount shown on the SLF Connect application and the 15-year repayment schedule, the fund would like to clarify that the repayment schedule for borrowers is set
after graduation and has been debt-free for 2 years. The debt amount and repayment rate for each borrower will not be the same. The repayment must be completed within 15 years. The annual repayment rate is divided into principal and interest payments as follows:
Year 1: Pay 1.5% of principal with no interest.
Year 2: Pay 2.5% of principal plus 1% interest of the remaining principal.
Year 3: Pay 3% of principal plus 1% interest of the remaining principal.
Payments will be made in steps until Year 15 (the final year) when 13% of principal plus 1% interest of the remaining principal will be made. The Fund charges a loan interest rate of only 1%; no double interest is calculated. In cases where the total amount to be paid is different from the specified table, this is due to various reasons.
For example, misunderstandings and late payments result in outstanding interest or late fees, which the fund requests to be paid according to the total amount to be paid as shown in the Student Loan Fund Connect applicat
ion. As for the interest that the borrower is wondering about, why is it increasing daily? Let me explain that if the principal is 200,000 baht, the interest is 1% per year, there will be interest of 2,000 baht per year. When calculated daily, it will be interest of 5.48 baht per day. The system will calculate the interest daily until the borrower has paid off the debt in full.
The fund is in the process of calculating the debt burden retrospectively from the date of the loan until now for 3.6 million borrowers, which has approximately 100 million calculation items. When the calculation of all debt burdens in the system is complete, the fund will be put into the system for further information. And I would like to confirm that no one will lose their rights according to the law,” the fund manager concluded.
Source: Thai News Agency