GSB, Social Enterprise ink pact to assist SMEs, start-ups
The Government Savings Bank (GSB) signed a memorandum of understanding with the Social Enterprise Thailand Association (SE) under a campaign to promote small and medium enterprises and start-up companies.
“The GSB will work with SE in designing business training courses for social entrepreneurs as well as providing financial schemes that suit the needs of social SMEs and start-ups in the current economic situation,” GSB president Withai Ratanakorn said.
“For example, we have Bt10-million loans for businesses which wish to expand, renovate or fix equipment at a flat interest rate of 2.99 per cent in the first two years. After that the interest will be at a minimum overdraft rate, or currently 5.9 per cent annually,” he said.
“Those applying for long-term loans under a maximum 10-year repayment plan will be offered a grace period in the first year, 2.99 per cent interest in years 2-3, and then a minimum loan rate [MLR], currently 6.15 per cent annually, until year 10,” Withai said.
“For loans under Bt3 million, borrowers can use the Thai Credit Guarantee Corporation as a personal guarantor, while loans more than Bt3 million will require an asset as collateral,” he said.
“So far, applicants in social enterprises have signed up for loans of more than Bt17 million with GSB,” Withai added.
SE president ML Dispanadda Diskul said the MoU is part of the association’s mission, which aims to establish cooperation between its members and partner organisations in promoting Sustainable Development Goals among social enterprises in the country.
“One of the challenges that social enterprises are facing is the lack of funding. Now, the cooperation with GSB will help them progress sustainably in their respective fields,” he said.
“Under this campaign, SE will organise seminars and training courses by experts in social enterprises for its members and GSB’s clients, as well as exhibition fairs to promote products and services of social enterprises,” he added.
