SME Development Bank announces to maintain conditions for easing loan qualifications Encourage SMEs to enter the system open the way to the source of funds

SME Development Bank raises the strategy to add capital along with development Announced with the same conditions for easing loan qualification Advise entrepreneurs to accelerate their own potential development go ahead login help strong business Open the way to the source of funds successfully.


Mr. Mongkol Leelatham Managing Director Small and Medium Enterprise Development Bank of Thailand (SME Bank or SME Development Bank) said that the bank’s strategy to support SME entrepreneurs After leaving the organizational solution plan or recovery plan will focus on promoting all SMEs especially the small ones to access the source of capital coupled with the development by promoting the registration of a juristic person Preparation of accounts receivable – paid and create a single set of accounts; also create a business crutches or help to support the start-up business, such as raising standards Develop products and packaging to be beautiful and modern and expanding through online markets, etc., which will help SMEs grow sustainably


In the past year 2014-2017, the Bank has relaxed the credit criteria for various projects. To make it easier for SMEs to access credit Whether it is a Small SMEs loan, a good seller loan, a Productivity Development Loan (PIL) Phase 2 by adjusting the conditions of repayment history From the past, 24 months of debt restructuring had never been restructured to just 12 months. Previously, having had to do business for at least 1 year to “unscheduled” to allow startups to access funding sources, etc.


Over the past 4 years, the bank has approved new loans to more than 39,627 SMEs with a credit line of over 91,394 million baht, most of them 46% or 18,095 approved loans with a credit limit of less than 1 million baht, while the outstanding loans as of the day As of December 31, 2017, the credit line is 100,685 million baht, and the accumulated non-performing debt (NPL) amounted to 11,432 customers with the credit line of 16,690 million baht, which accounted for more than 81% of individuals who borrowed less than 1 million baht, up to 78% in total. It was found that bad debt from loans with accommodative conditions was higher than non-relative projects. However, during 2015-2017, bad debt was only 3.32%.


Mr. Mongkol continued that the easing of qualifications in the past The main objective is to create opportunities for the smallholders to access more funding sources. reduce the impact of the economic stagnation during that period therefore have to accept the high risk of bad debt. At this time, although the economy has clearly recovered. The bank also wants to continue to promote retail, so it will maintain the same easing measures. under the regulations of the Bank of Thailand


However, even if the bank has eased the qualifications It is even more important to enable entrepreneurs to enter the source of capital. Entrepreneurs need to try to develop their potential to be higher. which login will be the key to enhancing the business because when already in the system is like having a mirror reflecting strengths and weaknesses can bring problems to be solved and improved to make the business stronger and when the business has increased capacity would have the ability to pay higher debts The chances of incurring bad debt will be less as well.


“In the past, SME entrepreneurs who had not been able to access credit were the main issue caused by the entrepreneurs themselves. Qualifications are not yet eligible for a waived project, and there may be a history of arrears. or debt restructuring does not meet the criteria Insufficient debt repayment ability, such as having a very high debt burden or documents showing income inconsistent with the information, etc. Therefore, if entrepreneurs who want credit You have to try to upgrade yourself. Increase the potential to be able to pass the criteria for consideration, which SME Development Bank is ready to help Entrepreneurs can consult at any bank branch, including through the Call Center at 1357, which will have a team to give advice. help from the beginning until they can reach the source of funds successfully,” said Mr. Mongkol.





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