Credit Extension to Help Independent Workers and SMEs Related to Tourism

The Cabinet on 15 February 2021 approved the revision of its decision on 24 March 2020 in order to improve credit extension criteria for independent workers affected by the COVID-19 outbreak. It also approved a low-interest loan program for small and medium-sized enterprises (SMEs) related to tourism businesses.

In the credit extension scheme for independent workers, both the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives had extended credit totaling 40 billion baht for these workers.

The Cabinet decided to extend the grace period for repaying the principal and interest under this scheme from six months to 12 months on a case-by-case basis.

The loan period will also be extended up to three years from two years and six months. The Cabinet decision is intended to ease financial burdens on independent workers, who have been affected by the new wave of COVID-19 infections, so that they would not turn to unconventional loans.

As for the loan program for SMEs related to tourism businesses, the Government Savings Bank will extend credit of 10 billion baht for tourism businesses and supply chains.

Borrowers seeking to take part in this program should have vacant plots of land or land and buildings with title deeds as collateral. Their information does not have to be checked by the National Credit Bureau.

Credit to be extended for each borrower will not exceed 70 percent of the Government’s land appraisal value. The maximum credit line for individuals is capped at 10 million baht and 50 million baht for juristic persons.

The loan period is three years, with an interest rate of 0.10 percent in the first year, 0.99 percent in the second year, and 5.99 percent in the third year.

Source: The Government Public Relations Department