Guidelines for Reducing Non-Performing Loan (NPL) of Farmer Debtors Bank for Agriculture and Agricultural Cooperatives, Phak Hai Branch Phra Nakhon Si Ayutthaya Province

Abstract

The purpose of this study was to study the causes of the problem of non-performing loans (NPLs) that are increasing in volume and to find solutions to this group of debtors to enter a normal debt situation. The sample consisted of 213 receivables of farmers' loans with outstanding debts, 10 receivables who could not repay their debts on time, and 3 loan employees. The analysis results showed that the most common cause of non-performing receivables (NPL) problems was external factors due to economic downturns, followed by personal factors due to higher household expenses, and internal factors due to lack of customer follow-up. The solution to normalize non-performing receivables (NPLs) is 1) Increase the frequency of continuous debt collection by employees. 2) Create a clear common goal of the team in the branch to improve the debt collection process, which should be planned, strategized, and evaluated at every stage (1 month), and 3) provide training to educate employees on the loan process, loan analysis, and debt management so that employees have the knowledge and expertise to be able to pay loans effectively.