Thailand’s Deputy Minister of Finance, Paopoom Rojanasakul, disclosed the government’s intention to provide assistance to Small and Medium-sized Enterprises (SMEs) that have encountered challenges in securing loans from commercial financial institutions due to stringent credit criteria amid the ongoing economic rebound.
In response, the government is expediting the implementation of special financial mechanisms through two initiatives via Small and Medium Enterprise Development Bank of Thailand (SME-D Bank), which involve:
- The “SME Empowerment” program, which offers a total credit facility of up to 10 billion baht, aims to provide funds for additional liquidity, for investment, expansion, and enhancement of small and vulnerable SMEs with an annual revenue of not more than 2 million baht. Under this initiative, individuals can access credit of up to 1.5 million baht each, with a fixed interest rate of 3 percent per annum for the first to third years. Borrowers will not be required to make principal repayments for a period of up to 12 months, and applications will be accepted until December 30, 2025.
- The Beyond “Winged SME” program, which offers a total credit facility of up to 10 billion baht, aims to provide funds for additional liquidity, for investment, expansion, enhancement of business, and for assets or machinery modification to improve operation potential for SMEs with an annual revenue of not more than 2 million baht. Under this initiative, individuals can access credit of up to 15 million baht each, with a fixed interest rate of 3 percent per annum for the first to third years. Borrowers will not be required to make principal repayments for a period of up to 12 months, and applications will be accepted until December 30, 2025.
Both initiatives aim to assist SMEs in various industries, particularly small and financially fragile SMEs, by enabling them to access funding sources and maintain adequate liquidity for the immediate operation of their businesses.
Based on financial report data, KBANK, BBL and SCB could be the most beneficial banks from this 20 billion baht soft loan measure due to their exposure to SMEs.
