Money lending and borrowing have always been one of the largest financial activities. It is interesting to see how new concepts and approaches have taken shape in the money lending and borrowing landscape over the years. One of the most modern, effective, and seamless approaches is pico lending, or also known as pico finance.
What is Pico Finance?
Regular loans, whether it is a personal loan or a business loan, involve a significant amount. Unlike regular loans, pico finance involves low monetary amounts which makes it completely different from the rest. Although this approach has worked well in several countries, it has especially been well-received in Thailand. As of today, there is a strong pico financial loan network in the country.
The small monetary amount lending/borrowing concept of pico finance has been well received by Thailand's government as well. In fact, the country's government has implemented the innovative concept of pico finance in its nano loan lending program facilitation to help address the loan debt issue. You can get an insider view of pico finance at Pantip from lenders’ as well as borrowers’ perspective.
How to be a part of pico financial loan network?
When it comes to pico finance, you can either be a lender or a borrower. However, it is important to consider the fact that the criteria for being a pico finance lender or borrower vary from one government to another. In order to be a part of pico financial loan network in Thailand as a lender, it's important to get accredited by the government. One of the topmost criteria many governments set forth for pico finance lenders is to have a certain amount of money in the repository.
How to borrow a pico finance loan?
Similar to being a pico finance lender, there are some criteria that borrowers need to fulfill in order to be eligible. The informal model of pico financial services has caused many to develop a perception that borrowing pico loans is hassle-free. This is partially true as borrowers do need to go through certain documentation processes such as verifying the source of income, the amount earned annually, number of family members, etc.