Cabinet approves THB 15 billion soft loan scheme to support SMEs in Thailand’s deep South

The Cabinet has approved a 15-billion-baht soft loan scheme to support small and medium-sized enterprises (SMEs) in Thailand’s three southern border provinces, following recent unrest that has impacted investor confidence and business operations in the area.

Paopoom Rojanasakul, Deputy Finance Minister, announced on Tuesday that the government would extend and revise the criteria for the financial support scheme to ensure continuity and enable local businesses to remain operational. The scheme will now be in effect until the end of 2027.

The soft loan initiative, to be implemented via the Government Savings Bank, will provide low-interest loans to participating financial institutions—both commercial banks and specialised financial institutions. These institutions will then on-lend to SMEs operating in the three southernmost provinces of Yala, Pattani, and Narathiwat, as well as four districts in Songkhla (Thepha, Chana, Na Thawi, and Saba Yoi).

The loan scheme offers funding at a fixed annual interest rate of 1.99%, with a maximum borrowing limit of 20 million baht per borrower. The funds are intended to support working capital or business expansion.

“The government prioritises supporting entrepreneurs in these areas by improving access to affordable funding so they can recover and continue operating,” Paopoom said. “This scheme will help reduce interest burdens, strengthen business confidence, and encourage long-term investment in the region. It is expected to foster financial and economic development and contribute to the area’s broader growth.”