The Ministry of Industry has launched two loan projects for 2024, ‘Sua Tid Pik’ and ‘Kong Krapan’, to help SMEs overcome the economic crisis. The total loan amount is 1.9 billion baht, with low interest rates and relaxed terms and conditions, so that SMEs can access sources of capital and develop their businesses sustainably.
Mr. Ekkanat Promphan, Minister of Industry, revealed that from the Thai economic situation that is facing challenges on all sides, the National Economic and Social Development Council (NESDB) has revised down the GDP forecast for 2024 to only 2-3%, with the tourism sector being the main driver, while the industrial sector has not fully recovered. Therefore, I have ordered the Permanent Secretary of the Ministry of Industry to urgently help SME entrepreneurs, which are the main force of the Thai economy, that we must promote, create opportunities, provide convenience, and provide capital to support SME entrepreneurs, and elevate their businesses to grow steadily.
Mr. Nattapol Rangsitpo
l, Permanent Secretary of the Ministry of Industry and Chairman of the Board of Directors of the SME Development Fund under the Pracharat approach, Ministry of Industry, said that the fund has issued 2 loan projects: the loan project to increase business capability (Tiger with wings) and the loan project to enhance business liquidity (Kongkrapan) to support and provide financial assistance and increase access to sources of funds for SMEs with the potential to expand and develop their businesses effectively and sustainably, which is in line with the policy of the Ministry of Industry in providing assistance to SMEs in accordance with the objectives of the SME Development Fund under the Pracharat approach.
For the business capacity building loan project (Tiger Wings), the aim is to help SMEs increase their competitiveness, especially in terms of innovation development, technology improvement and production efficiency, which will help add value to the Thai economy. The target groups are 1) SMEs that have receiv
ed the Outstanding SME Industry Award or passed the first round of the Outstanding SME Industry Award from the Ministry of Industry within the past 3 years, counting to the date of application for the project. 2) SMEs that have received promotion and potential development from government agencies under the Ministry of Industry, the Federation of Thai Industries, the Thai Chamber of Commerce and the Board of Trade of Thailand, the Thai SME Federation, joint operations units or network institutions under the Ministry of Industry. And 3) SMEs that have not received the Outstanding SME Industry Award or the promotion and potential development award but wish to receive promotion and potential development as specified by the fund. The qualifications of the borrower must be a potential SME with the specified business size, be a Thai juristic person, have been in operation for no less than 3 years, can include the management experience of the executives, are not NPL or have been prosecuted on the date of application
for the project, and have a normal debt repayment history on the date of application for the project. Not receiving financial assistance from other specified projects. Both existing and new customers can apply. For the loan format, the Winged Tiger project has a total credit line of 1,200 million baht, a maximum loan amount of 15 million baht per person, and is a long-term loan with a fixed interest rate of 3-5% per year (depending on the collateral). The maximum loan period is 10 years, with a maximum of 12 months of no principal repayment. Collateral is provided, such as land, buildings, machinery, or business collateral, or a guarantor. As for the Business Liquidity Enhancement Loan Project (Kongkrapan), it aims to help SMEs maintain their business liquidity and strengthen them to overcome the economic crisis. The target group and qualifications of the borrowers are the same as the Capability Enhancement Loan Project (Winged Tiger) under a total credit line of 700 million baht, a maximum loan amount of 5 m
illion baht per person, a long-term loan with a fixed interest rate of 5-7% per year (depending on the collateral), a maximum loan period of 3 years, and collateral is provided, such as land, buildings, machinery, or business collateral, or a guarantor.
‘In addition to the attractive loan products, the SME Development Fund under the Pracharat approach has also improved the criteria, qualifications, and collateral to support some potential SMEs who are still unable to access funding from regular financial institutions. They can now more easily apply for loans with the SME Development Fund under the Pracharat approach. In addition, there are mechanisms from government agencies and network institutions under the Ministry of Industry that vouch for and support the loan application throughout the application process to ensure the growth and advancement of SMEs. In this challenging economic situation, the SME business sector, which is the heart of the Thai economy, is facing difficulties. The SME Development Fund
would like to be a key force in supporting entrepreneurs with two new loan projects, ‘Tiger with Wings’ and ‘Kongkrapan’, to strengthen, increase potential, and create immunity for Thai businesses to grow sustainably even during crises,’ said Mr. Nattapol.
SMEs interested in the project can apply for a loan at https://i.industry.go.th or study the details at www.thaismefund.com or ask for more details at the SME Development Fund Office under the Pracharat approach, the Provincial Industrial Office or the Small and Medium Enterprise Development Bank of Thailand (SME Bank) nationwide.
Source: Thai News Agency
