Bangkok: Four state-owned banks are offering special interest loans to support Thais in switching to clean energy, reducing the burden of fuel and electricity prices.
According to Thai News Agency, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed that the government is accelerating efforts to turn "crisis" into "opportunity" by upgrading energy efficiency while simultaneously strengthening long-term energy security and sustainability amidst rising oil prices and increasing electricity costs. Simultaneously, systematic support measures have been implemented through special-interest loans from state-owned specialized financial institutions (SFIs) to encourage individuals and businesses to switch to clean energy and energy-efficient technologies, reduce costs, and enhance competitiveness. Four SFIs have jointly offered loans covering households, farmers, and SMEs to alleviate energy expenses and drive the country towards a green economy.
GHB (Government Housing Bank) has launched three "Happy and Comfortable Home" packages for purchasing, building, or renovating energy-efficient homes with renewable energy installations, at interest rates starting at 2.20% per year. These include the GHB's Energy Efficiency Loan (Number 5) with a fixed interest rate of 2.69% for the first two years, and a solar rooftop loan with a maximum loan amount of 300,000 baht and a fixed interest rate of 3.90% for the first three years, without requiring additional mortgage registration.
Government Savings Bank (GSB) has launched green loan products covering homes, cars, and businesses, such as the GSB Green Home Loan, offering up to 110% financing with a repayment period of up to 40 years. Other options include the GSB Go Green loan for solar panel installations, electric vehicle (EV) purchases, or energy-efficient appliances (Energy Efficiency Rating 5), and SME loans with interest rates starting at MLR -0.25%.
The Bank for Agriculture and Agricultural Cooperatives (BAAC) supports farmers in adopting the BCG Model through machinery loans with repayment periods up to 10 years, and BCG loans with flexible terms and repayment periods up to 15 years, along with working capital for 12-18 months.
SME D Bank supports entrepreneurs in adapting to green businesses through the SME Green Productivity loan program, offering a maximum loan amount of 30 million baht at an interest rate of 3%, with a repayment period of 10 years and a 12-month grace period for principal repayment. 'The loan measures from all four state banks help reduce the burden during periods of volatile energy prices, enhance energy security, and drive the Thai economy towards sustainability,' said Ms. Rachada.