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Thailand: Osmep granting retail SMEs loans
The Office of SME Promotion (Osmep) is providing a second series of low-interest loans to retail small and medium-sized enterprises (SMEs) with a combined sum worth 1.2 billion baht, aiming to enhance financial liquidity and loan access.
The funds for the loans come from the 4.89-billion-baht SMEs One loan scheme that started in June 1, said director-general Veerapong Malai.
Osmep and the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) are collaborating to provide these loans to SME business operators.
Applicants vying for the second series of the SMEs One loan scheme can apply online and the application process will end when the total credit line reaches 1.2 billion baht, said Mr Veerapong.
Osmep hopes to help SMEs cope with the crisis based on guidelines to increase opportunities for capital access, reduce costs and increase marketing channels in line with the government’s policy to aid and rehabilitate retail SMEs, he said.
The office expects 2,400 SMEs will apply for loans, said Mr Veerapong, which should lead to job retention of around 12,000 positions and generate more than 5 billion baht in turnover in the economic system.
“By the end of this month, Osmep will expedite the screening of documents for entrepreneurs applying to the SMEs One loan scheme in the first phase, to approve the loans by September,” he said.
“There are 2,235 SME operators undergoing the screening process of document submission and information analysis, with a total credit line estimated at 3.2 billion baht.”
SME D Bank has approved loans for 332 SME operators with an average credit line of 1.46 million baht each.
A 1% interest rate per year is applied for SMEs One loans, with a maximum instalment period of seven years. The maximum credit line is set at 500,000 baht per borrower.
Applicants can be individuals or juristic persons in the micro-SME group, defined as having an annual income of no more than 1.8 million baht and having no more than five employees when making the loan application.
They must have never received financial assistance from the SME Development Fund, Small Enterprise Capital Revival project or the SME rehabilitation project.
Source: https://www.bangkokpost.com/business/1973875/osmep-granting-retail-smes-loans