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The objectives of this study are to examine the government sector’s measures for Krung Thai Bank (Public Company Ltd.) to expedite loan collection in Student Loan Fund scheme, to explore the behavior of debtors in borrowing this loan and repaying to the fund, to identify discern the socio-economic factors affecting the loan repayment behavior of students in the Student Loan Fund scheme which is locally responsible and managed by Chiang Mai Region 3 Office of Krung Thai Bank, PCL., and to explore the problems and obstacles of loan repayment performance of the borrowers. Data and information for this investigation were obtained from both primary and secondary sources. Particularly, the primary information was collected by means of questionnaire from 400 samples of those individuals who made borrowing from Student Loan Fund through the services provided by Chiang Mai Region 3 Krung Thai Bank (PCL). The analysis was performed upon the results of descriptive statistics, Likert rating scale method for priority ranking of various factors, and Chi-square test to determine the relationship between personal background as well as loan repayment behavior of the borrowers under study and their loan repayment default. The findings reveal that the majority of debtors of the Student Loan Fund are characterized as female, 25- 30 years old, single, with bachelor’s degree education, having domicile in northern region, government agency or state enterprise employee, working in northern Thailand, and having parents or guardian working as government agency or state enterprise employee. Most of these debtors have income from main occupation in the range of 15,000 - 25,000 baht per month as well as earning from secondary occupation less than 5,000 baht per month, spend 5,001 – 10,000 baht per month for household consumption, incur no expense for housing, and spend less than 5,000 baht per month for other expenses. On the average, they also have 1 – 2 family dependents. The main reason for them to borrow from the Student Loan Fund was their desire to help reduce their family’s financial burden, by entering the loan agreement with the loan size greater than 200,001 baht. The samples under this investigation are those who signed the loan agreement during 1997 – 2007 and began making loan repayment in 2008 with some outstanding debt remaining up to present time. Their loan repayments have been made through Krung Thai Bank. Out of the total 400 samples, 218 used to fail to fulfill their repayment obligations which can be distinguished into 107 debtors with 1 – 3 times of default/arrear, 105 debtors with 4 – 7 times of default/arrear, and 6 debtors with more than 8 times of default/arrear. Annual loan repayment plan is generally arranged to be made in installments at about 1,001 – 5,000 baht per installment. This study found the relationship between personal characteristics and loan repayment behavior of the samples under investigation; as well as found the most important state’s present and future measures and policies that can affect loan repayment behavior of borrowers from Student Loan Fund. At present, the legal measure is considered the most effective for debt collection; while in the future, the most appropriate measure is suggested to be the keeping of debt burden record of the debtors in the database of the National Credit Bureau. On factors underlying loan repayment behavior and performance, the study found the most and highly important economic factors to include income level, routine household expenditure, and prices of consumption goods and services which are necessary for daily life. The highly important social factors are apparently the security of present employment and social status of the debtors. Problems and obstacles in the view of borrowers were found to be the lack of understanding in detail since the beginning about the terms and conditions in the loan agreement as the most and highly important, and inadequacy of income to pay off the debt as well as the heavy debt burden as the second most important factor with moderate level of importance. From the perspective of Student Loan Fund management, the first highly important problem was pointed out to be the factor concerning communication channels and public relations, followed by the issue related to the state’s measure to relax the terms and conditions for full repayment to Student Loan Fund which is also rated as highly important. Key word : behavior of debtors, loan repayment, The Student Loan Fund, Krung Thai Bank (Public Company Ltd.), Chiang Mai Province
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