Loans for flood-hit SMEs

The Cabinet also approved the first-home scheme.

Small and Medium Enterprise Development Bank of Thailand, a state-run bank, will set aside Bt2 billion for loans. Each SME can borrow up to Bt1 million. The interest rate is 8 per cent and the government will give interest rate subsidy of 2 per cent, so borrowers need to pay interest of only 6 per cent annually, said Viroon.

The bank will also grant exemption from repayment of the principal amount during the first year when borrowers need to pay only the interest.

Borrowers will receive clean loans and no collateral is needed.

Those who are on the black list of the Credit Bureau can also apply for loans, he said.

To be eligible, borrowers have to be located in the areas which have been declared by authorities as flood-hit.

So far, 41 provinces in the North, Northeast and Central regions have been affected by the flooding.

Meanwhile, Deputy Finance Minister Boonsong Teriyaphirom, said the Cabinet had approved tax break for first-time home-buyers.