A study of solutions for non-Performing loan (NPL) of Kasetsukjai card among customers of bank agriculture and agricultural corporatives (BAAC), Pathumthani branch

Abstract

This study aimed to find the causes of non-performing debt (NPL) from the Kaset Sukjai (Happy Farming) card among customers of the Bank for Agriculture and Agricultural Cooperatives (BAAC), Pathum Thani branch, as well as find the effective solutions for reducing non-performing debt (NPL) Data were collected with valid and reliable questionnaires and sent to 110 customers of Bank of Agriculture and Agricultural Cooperatives (BAAC). Participants in this study were the customers who had overdue payment 0-3 months and who were in existing non-performing loan list. Five participants were invited for in-depth interviews. The collected data was statistically analyzed by using percentage, mean and standard deviation.

The study found that the main problem of non-performing loan (NPL) from Kaset Sukjai (Happy Farming) card under the Bank for Agriculture and Agricultural Cooperatives (BAAC) was the customers could not make ends meet. Besides, they were lack of financial discipline. This study offered a solution to solve the customers non-performing loan problem by restructuring debt through extended payment periods and defining payment schedules relative to the customer's source of income. As a long-term solution, this study suggested that customers should be provided knowledge in basic finance. This would help the customers to improving their financial planning, strengthen financial discipline, knowing how to plan savings as well as expense planning. And this also help to prevent them from unnecessary debt in the future.