Bangkok Triples Green Loan Ceiling to Accelerate SME Decarbonisation
The government has extended the SME Green Productivity scheme until 2026, tripling individual loan limits to £680,000 to fund clean-energy transitions
- The Thai government has tripled the individual loan ceiling for its SME Green Productivity scheme from 10 million to 30 million baht per enterprise.
- The programme, designed to help small and medium-sized businesses fund clean-energy transitions, has been extended until the end of 2026.
- Eligibility has been expanded from focusing solely on Electric Vehicles (EVs) to now include all forms of "clean-energy vehicles" to aid logistics and manufacturing sectors.
- The loans are intended to help SMEs cover high upfront costs for machinery upgrades and technological innovation, offering a fixed 3% interest rate for the first three years.
The government has extended the SME Green Productivity scheme until 2026, tripling individual loan limits to 30 billion baht to fund clean-energy transitions.
The Thai Cabinet is set to approve a significant expansion of the 15-billion-baht SME Green Productivity loan programme, extending its duration and tripling the capital available to individual firms to support the transition to clean energy.
Lalida Periswiwatana, deputy spokesperson for the Prime Minister’s Office, confirmed on Tuesday that the revised scheme will now run until 30 December 2026.
The most notable change is the increase in the individual borrowing limit, which has been raised from 10 million baht to 30 million baht per enterprise.
This adjustment is specifically designed to support small and medium-sized enterprises (SMEs) facing high upfront costs for industrial machinery upgrades and large-scale technological innovations.
The government has also broadened the scheme’s eligibility criteria. While the previous framework focused heavily on Electric Vehicles (EVs), the updated terms now encompass all forms of "clean-energy vehicles."
This shift is intended to help logistics and manufacturing firms replace ageing fleets with a wider variety of sustainable alternatives, further reducing the industrial sector's carbon footprint.
The programme continues to offer a highly attractive fixed interest rate of 3% per annum for the first three years, with the state subsidising the difference for the Small and Medium Enterprise Development Bank of Thailand (SME D Bank).
The decision to extend the programme comes after an internal audit revealed that as of late October 2025, only 4.8 billion baht—roughly 32% of the total fund—had been utilised.
Officials believe that by extending the deadline and raising the loan caps, the remaining capital can be deployed more effectively to meet the needs of larger factories and firms located within industrial estates.
The Ministry of Industry anticipates that the expansion will benefit an additional 1,700 SMEs, generating an estimated 68.7 billion baht in economic circulation.
Crucially, the move is expected to safeguard over 27,000 jobs by helping businesses remain competitive amidst tightening global environmental regulations.
"This revision ensures that our SMEs are not left behind in the global green transition," Lalida stated. "By providing access to low-cost capital for another year, we are allowing businesses the time they need to modernise their operations and secure their long-term sustainability."
