Guidelines for Solving Debt Problems by Applying Information System for Financial Institutions in Ethnic Communities in the Northern Special Economic Corridor Area

Abstract

The purposes of this study were to develop the information system for community financial institutions for information management of Kae Noi Royal Project cooperative members and to get the guidelines to solve debt problems by applying the information system of financial institutions in ethnic communities in the Northern Economic Corridor Area. The semi-structured interview was used in this study. The population and sample, totaling 60 samples, were under the target group qualifications of the Equitable Education Fund (EEF), which were selected using the purposive sampling method and they must volunteer in providing their information. The results showed that most of the group members were farmers, who borrowed from the cooperative for not more than 25,000 Thai baht per person on average. Most of them invested in agriculture in each production cycle for the cost of fertilizer, weed control, prevention and elimination of diseases, insects and pests. The loans were without collateral, and most of the household debt was borrowed from the village fund and the family. The Covid-19 pandemic resulted in an average 85% loss, and the debt also increased. The guidelines for solving debt problems should focus on the four financial skills for financial stability and life planning using the wheel of the cycle and the nine skills. The guidelines for the cost reduction and value-added generation in crop production will generate income for the non-agricultural sector from processing and reducing production costs, by using waste to generate income and reducing costs from using chemicals. This will affect the better quality of life of the farmers by reducing debt, increasing income, planning production, promoting financial and food security.