Bangkok: The SME Bank has announced a 10 billion baht budget to support small and medium enterprises (SMEs) in purchasing new pickup trucks, with the initiative expected to launch in April. This measure is part of a broader strategy to help ‘vulnerable groups’ access loans and is aligned with government policies to revitalize Thai SMEs through a 110 billion baht guarantee throughout 2025.
According to Thai News Agency, Mr. Sittikorn Direksunthon, Director and General Manager of the Small Industry Credit Guarantee Corporation (TCG), stated that the TCG board has approved a hire purchase loan guarantee measure, known as TCG SMEs PICK-UP. This scheme aims to assist SMEs and entrepreneurs in acquiring new pickup trucks for transporting goods and trading businesses by leveraging the TCG guarantee mechanism. An estimated 12,500 entrepreneurs are expected to benefit from these loans, helping to sustain 37,500 jobs and generate economic benefits of 41,300 million baht.
The initiative also seeks to rejuvenate the sluggish commercial vehicle market, thereby boosting the economy throughout the year. By collaborating with small investors, the program will offer loan guarantees ranging from 800,000 to 1 million baht per vehicle. In cases of non-performing loans (NPL), the scheme includes provisions for auctioning repossessed vehicles and extending the debt repayment period from three to seven years with 0% interest. The minimum payment is set at 5,000 baht per month.
The initiative’s framework also includes mechanisms for debt recovery in cases where leasing companies are unable to locate debtors or vehicles. Claims can be made for 30 percent in the second year, 40 percent in the fourth and fifth years, and 50 percent thereafter. The SME Bank plans to submit these conditions to the Treasury for approval, aiming for implementation by April 2025. Initially, the program will involve leasing companies with financial institutions as major shareholders, with plans to expand to non-bank leasing companies and car manufacturers in future phases.
Additionally, SME Bank has allocated over 110 billion baht to guarantee SME loans through 2025, promoting an expanded credit guarantee project. This effort responds to data from the Bank of Thailand, which reported a 0.4% contraction in commercial banking loans in 2024, the largest decrease in 15 years. The SME Bank’s objective is to facilitate loan access for over 3.2 million SMEs, predicting the creation of 142 billion baht in system loans, aiding 165,000 SMEs, maintaining 940,000 jobs, and generating economic benefits totaling 454.3 billion baht through various credit guarantee initiatives, including the government’s PGS 11 measures and the “SME Bank Sustainable SMEs” project.
In 2024, SME Bank reported loan guarantees totaling 53,738 million baht, assisting 88,472 entrepreneurs and resolving 18,489 cases of accumulated debts worth 11,872 million baht. For 2025, the bank is preparing a guarantee limit exceeding 100 billion baht, aiming to support 165,000 SMEs and ‘vulnerable groups’ such as freelancers, while continuing its mission to transform organizations and enhance its role in supporting SMEs across Thailand.
