Thailand's Credit Guarantee Corporation Launches Nano Plus Program for Small Traders
Thailand's Credit Guarantee Corporation launched the Nano Plus program to provide credit access to small traders and self-employed workers who lack collateral or credit history, offering loans of 5,000 to 50,000 baht with waived guarantee f
Throughout this year, economic volatility, Middle East tensions, soaring energy costs, and slowing consumer demand have squeezed small entrepreneurs who lack sufficient liquidity and working capital. SME credit has contracted for 16 consecutive quarters, signaling that many micro-businesses struggle to access formal credit. In response, the Credit Guarantee Corporation (CGC), led by Dr. Sittikorn Direkesunthon, has rolled out the Nano Plus Credit Guarantee Program to unlock credit access for this vulnerable group. The program partners with state financial institutions and non-bank microfinance providers to offer flexible lending criteria and accessible financial channels to small traders and self-employed workers who lack collateral or credit history.
Nano Plus is designed specifically to support micro-SMEs and small merchants considered a vulnerable group by financial institutions due to incomplete financial records and high perceived risk. The program taps into non-bank microfinance providers regulated by the Bank of Thailand, as well as emerging virtual banks, to expand credit availability. Financial institutions typically view these borrowers as high-risk, pushing many toward informal lending; the CGC program mitigates that risk and boosts credit enhancement to encourage formal lending.
The program features a total credit guarantee fund of 2 billion baht, launching with an initial 500 million baht phase. Loans range from 5,000 to 50,000 baht per borrower, with a maximum guarantee term of four years. The CGC uses its proprietary TCG Credit Scoring tool to assess risk for small borrowers. Notably, guarantee fees are waived for the full four-year term, with risk-based pricing handled by participating financial institutions and non-banks. The CGC will cover non-performing loan losses up to 5 percent. The program is projected to help 100,000 SME borrowers (averaging 20,000 baht each), preserve 146,000 jobs, and generate over 9,860 million baht in economic benefit.
