GSB launches new scheme to help struggling SMEs
The Government Savings Bank (GSB) has launched a new loan campaign in which small and medium businesses (SMEs) affected by the Covid-19 outbreak can use their land title deed as a collateral for loans of up to Bt50 million.
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The bank has earmarked Bt10 billion to cover these loans.
“The scheme, called ‘SME Mee Thee Mee Ngern’ [SME With Land can get Loan], aims to help SME operators who have had to mortgage their land to maintain liquidity during the outbreak,” the bank’s president Vitai Ratanakorn said.
“Some of these business operators are so desperate that they have been turning to private loan firms and as a result risk losing their land. These companies usually give out loans at high interest rates and often significantly undervalue the land.
“Under this campaign, SMEs can apply for loans of up to Bt50 million using their land title deed as a collateral. Loans of up to 70 per cent of the property’s value can be granted at a fixed annual interest rate of 5.99 per cent for three years,” he added.
“Borrowers’ financial burden and income will not be screened, and they can get their title deed back if they are able to repay their loan within three years.”
GSB has earmarked Bt10 billion for this scheme, for which applications will be accepted from now until June 30, 2021, or until the funds run out. Those interested can go to the nearest GSB branch or visit www.gsb.or.th.
