Bangkok: Siam Commercial Bank (SCB) is taking proactive measures to assist small and medium enterprises (SMEs) in navigating the challenges posed by the ongoing situation in the Middle East. The bank has launched a Sustainable Financing program, offering loans of up to 50 million baht, which are unsecured and payable over a decade, as well as hire-purchase loans for energy-efficient vehicles, up to 30 million baht, payable over five years.
According to Thai News Agency, Ms. Pikul Srimahan, Chief Debt Recovery Management Officer and Chief Business Banking Officer at SCB, highlighted that the conflict in the Middle East is exerting pressure on Thai businesses, particularly SMEs within the supply chain. These businesses face rising operational costs due to increased energy prices, coinciding with the Bank of Thailand's directive for financial institutions to provide immediate support to affected customers. SCB is committed to offering comprehensive support, including a Sustainable Finance loan with an initial special interest rate of 2.99% for the first year, aimed at helping entrepreneurs reduce long-term costs and enhance their competitive advantage.
The Sustainable Financing program features business loans of up to 50 million baht without collateral, with a repayment term extending up to 10 years. It also includes hire-purchase loans for energy-efficient vehicles, up to 30 million baht, with a repayment period of up to five years. Additionally, SCB is prepared to offer in-depth consulting, sustainability training seminars, and ongoing monitoring and measurement of greenhouse gas emission reductions. This initiative encourages SMEs to transition towards environmentally friendly business practices over the long term, with applications open until June 30, 2026.
Ms. Pikul emphasized that the energy crisis is reshaping the economic cost structure, compelling businesses to adapt to higher costs and revenue uncertainties. She advised entrepreneurs to view this crisis as an opportunity to transition from traditional energy-dependent models to clean energy solutions, aligning with future competitive landscapes and transforming into green businesses.