THURSDAY, March 28, 2024
nationthailand

Collateral-free loans coming for SMEs, startups

Collateral-free loans coming for SMEs, startups

Industry Minister Suriya Juanroongruangkit said on Monday the government was preparing collateral-free loans for SMEs and startups worth up to Bt1 million each.
They will carry 1 per cent interest over a seven-year repayment schedule.
Speaking at a seminar titled “Economic Strategy under New Government”, Suriya said his ministry would soon seek Cabinet approval for a Bt10-billion budget that the Small and Medium Enterprise Development Bank of Thailand would disperse to SMEs and startups in the form of collateral-free loans.
The funding is designed to help entrepreneurs kickstart projects or recover from setbacks, he said, so no collateral will be required, as is the case with normal bank loans.
“However, the SME Bank will consider the feasibility of the business plan presented as one of the approval criteria,” he said.
Suriya said the scheme would complement the ministry’s five-point plan for taking Thai industry into the 4.0 era.
The plan promotes new s-curve industries such as electric vehicles and robotics, boosts the Eastern Economic Corridor and smart industrial parks, encourages “green” factory practices, fosters smart government through the use of IT and online services, and upgrades SMEs and startups with innovation and financial support.
“The government is committed to helping SMEs, which are the backbone of the industrial economy, while startups are full of innovation and new possibilities that could take Thailand to the next level in the global arena,” Suriya said.

RELATED
nationthailand