Islamic Bank of Thailand Launches Low-Cost Soft Loan Program Worth 100 Billion Baht with Interest Rate Capped at 3.50% for First Two Years
Islamic Bank of Thailand launched a 100 billion baht soft loan program with interest rates capped at 3.50% for the first two years, targeting SMEs and businesses impacted by global economic challenges.
Islamic Bank of Thailand has responded to the Cabinet's resolution by launching the "Low-Cost Soft Loan to Revitalize Thai Business" program with a total credit facility of 100 billion baht, according to Nujchareee Pakdeecharoen, Assistant Managing Director and Head of Retail Business Group at Islamic Bank of Thailand. The program aims to support entrepreneurs and individuals impacted by current global economic conditions, including energy price fluctuations and economic uncertainty, while promoting business capability enhancement and sustainability.
The initiative comprises four sub-programs offering credit support to SMEs (both individuals and juristic persons) and large enterprises registered in Thailand with Thai ownership exceeding 50% of registered capital. Interest rates for the first two years will not exceed 3.50% per annum.
The four main objectives are:
1. **Liquidity Enhancement for SMEs**: Support for SMEs and those seeking refinancing from existing or other financial institutions, with maximum credit limits of 30 million baht per applicant for up to two years.
2. **New Economic Momentum**: Funding for SMEs and large enterprises expanding into strategically important sectors including agriculture and agro-processing, tourism, automotive and parts manufacturing, medical and healthcare, smart electronics, and wholesale-retail businesses. Credit limits reach 100 million baht for SMEs and 150 million baht for large businesses, over up to five years.
3. **Business Capability Development**: Support for digital technology adoption, environmental sustainability, and future innovation, with limits of 100 million baht for SMEs and 150 million baht for large enterprises over up to five years.
4. **Tourism and Middle East Crisis Support**: Assistance for tourism and related businesses affected by Middle East conflicts, including hotels, accommodation services, and restaurants. Credit limits are set at 100 million baht for SMEs and 150 million baht for large businesses over up to five years.
Additionally, the general public can apply for multipurpose loans to install solar power systems or purchase electric vehicles for energy sustainability.
Interested applicants can contact Islamic Bank of Thailand branches, call the ibank Contact Center at 1302, or message via Facebook Messenger or Line (@ibank).
