SMEs Get Three-Year Free Guarantee Fees on Low-Interest Loans Through New Partnership
Thai CGC launches a new guarantee program offering SMEs seven-year loan coverage with three years of free guarantee fees and interest rates capped at 3.5% annually to help small businesses manage rising costs and economic pressures.
The Thai Credit Guarantee Corporation (Thai CGC), represented by Sithikorn Direksunonth, chairman and managing director, announced a collaboration with the GSB's "Business Revival Thailand" soft loan program (100 billion baht fund) and public and private financial institutions to offer low-interest credit guarantees. Under the "Thai CGC Quick Big Win" program with 50 billion baht in guarantees, borrowers receive seven-year coverage with free guarantee fees for the first three years, followed by just 1% annual fees in years four through seven based on remaining loan balances. Participating banks offer interest rates not exceeding 3.5% annually, helping SMEs reduce costs and improve cash flow.
Currently, various financial institutions participating in the Thai CGC Quick Big Win guarantee program offer diverse loan products tailored to different SME segments—from micro-businesses and street vendors to standard SMEs seeking loans between 100,000 baht and 40 million baht. These include programs such as Bank of Thailand's "SMEs Recharge," Krung Thai Bank's "sSME Smart Shop," Thai Commercial Bank's "New Business Loans," Islamic Bank of Thailand's "Green Table Loans," and Export-Import Bank's "Business Revival SMEs Thailand Soft Loans."
The low-interest credit guarantee program aims to make borrowing more accessible for SME groups through Thai CGC's guarantee mechanisms at reduced financial costs, supported by government backing through Bank of Thailand. This assistance helps SMEs cope with volatile economic conditions and energy crises stemming from Middle Eastern conflicts, which have driven up raw material and transportation costs. "This low-interest guarantee program will enable SMEs seeking investment and expansion capital to access credit more easily at lower costs, while simultaneously supporting struggling businesses in recovery by providing the stability needed to survive and move forward," Sithikorn stated.
