SME bank offers debt moratorium to flood-hit customers
Debt and interest repayments would be frozen for six months for customers affected by the flooding in several provinces due to Higos tropical storm that hit Thailand earlier this month, the Small and Medium Enterprise Development Bank of Thailand said.
The bank's managing director, Nartnaree Rathapat, said that both customers having term loan and promissory note contracts would be eligible for six months debt and interest suspension, provided they have been affected by flooding and are located in the following provinces: Nan, Chiang Mai, Phrae, Uttaradit, Lamphun, Lampang, Loei, Nongbua Lamphu, Mae Hong Son, Phayao, Udon Thani, Sukhothai, Chiang Rai, Nakhon Phanom, Tak, Amnat Chaoren, Surin, Surat Thani, Phang Nga, Ranon, Nakhon Si Thammarat, Chumphon and Phuket.
“In addition, existing customers can apply for loans to fix their business from flood damage for a maximum of five years with one year's grace period at a fixed interest rate of 4.99 per cent annually,” she added. “Customers with approved credit limit of less than Bt1 million could apply for a maximum Bt500,000 loan. Those with credit limit from Bt1 million to Bt5 million would be eligible for a maximum Bt1-million loan, while those with over Bt5-million credit limit could apply for up to Bt2 million loan, provided the combination of new and existing debt did not exceed Bt15 million.
“The bank is also preparing loans for entrepreneurs who wish to expand their business after the disaster has passed, such as 'Local Economy Loan', that features a low interest rate of 2.875 per cent for juristic clients and 4.875 per cent for individual clients in the first three years, and 'Extra Cash Loan' that offers 3 per cent interest in the first two years and minimum lending rate-plus-one rate from years 3-5. The loan limit is Bt3 million per client and no collateral is needed,” Nartnaree added.