Govt launches 1.9 billion baht soft loans for SMEs
Initiative aims to provide funds for business development and liquidity improvement at low interest rates
The Industry Ministry has launched two new loan programmes for small and medium-sized enterprises (SMEs), aiming to provide funds for business development and liquidity improvement at low interest rates.
The Loan for Boosting Business Efficiency and Loan for Strengthening Business Liquidity are offered under budgets of 1.2 billion and 700 million baht respectively, Industry Minister Akanat Promphan said on Tuesday.
He added that the money will come from the Thai SME Fund, which he serves as board chairman.
The ministry has set criteria for loan applicants as businesses that passed the first round of the ministry’s annual Best SME Award competitions in the past three years.
Alternatively, they can be SMEs that were granted promotional privileges from agencies under the ministry, the Federation of Thai Industries, Chamber of Commerce and Board of Trade of Thailand, or the Federation of Thai SMEs.
Akanat added that SMEs that do not fit the above criteria can still apply, provided they were registered as a Thai company, have been operating more than three years, and had a “normal” debt repayment status as of the application date.
Those having already received other loans or financial aid provided by the ministry will not be considered, he added.
The loan for business development is limited at 15 million baht per company, with a flat interest rate of 3-5% annually (depending on collateral), and a maximum repayment period of 10 years.
The loan for liquidity improvement is limited at 5 million baht per company, with a flat interest rate of 5-7% annually (depending on collateral), and a maximum repayment period of three years.
Interested candidates can apply for the loans at https://i.industry.go.th, provincial industry offices, or any branch of the Small and Medium Enterprise Development Bank of Thailand (SME Bank).
