Government unveils 2nd phase of soft loan program for SMEs

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BANGKOK – As part of the government’s policy to provide easy access to cash flow for small to medium enterprises (SMEs), the Government Savings Bank (GSB) has proceeded with the 2nd phase of its “soft loan” program, offering a total of 50 billion Baht in loans to SMEs. 

GHB bank signed a deal with 19 banks to provide the low-interest loans or soft loans as working capital to entrepreneurs and SMEs. The 2nd phase is a continuation of the previous project which offered a total of 100 billion Baht in credit.

As of November 2015, over 11,750 businesses applied for the 1st phase of the project with another 23 billion Baht pending approval. GHB bank expects that the new funds in the 2nd phase will sufficiently accommodate applicants that missed out on the 1st phase. The rest of the funds will then be allocated for new SMEs located in various regions across the country.

The financial terms of the 2nd phase include credit not exceeding 10 million Baht down from the previous 50 million Baht limit. The total 50 billion Baht approved for the 2nd phase is expected to be distributed to all participating banks this month.