Bangkok: The SME Bank has introduced a new initiative to support leasing and nano-finance groups by lifting the stipulation of loan guarantees for non-bank companies. In collaboration with the Thai Leasing Business Association, the bank is set to aid SMEs in acquiring pickup trucks for business purposes through the “Phi Pickup, Mee Khlang Kuan” program. Applications for this initiative will open on October 15th, aiming to facilitate the purchase of pickup trucks by SMEs as a means of livelihood.
According to Thai News Agency, the Ministry of Finance recently announced the designation of legal entities providing loans to small-scale industries as financial institutions. This change allows these entities to be recognized under the Small Industry Credit Guarantee Corporation (TCG) Act, thereby expanding TCG’s Credit Guarantee service to non-bank lenders. Previously, only subsidiaries of financial institutions were permitted to provide loan guarantees, a category that encompassed over 10 entities.
Mr. Sitthikorn Direksunthon, Director and General Manager of the Small and Medium Enterprise Credit Guarantee Corporation (TCG), explained that the new ministerial announcement is designed to assist micro-SMEs and self-employed individuals in accessing formal loans via the TCG’s Credit Guarantee mechanism. This initiative aims to reduce dependence on high-interest informal loans and bolster the grassroots and national economy. On September 24, 2025, the TCG Board of Directors approved criteria for non-bank loan operators eligible for TCG’s loan guarantees. The operators are categorized into two groups: nano-finance operators, with over 70 nationwide, and leasing operators, including more than 30 under the Thai Leasing Business Association, focusing on automobile and motorcycle leasing.
To facilitate the expansion of pickup truck leasing guarantee services to the non-bank sector, TCG convened a meeting on September 26, 2025, with leasing service providers. The discussion, led by Mr. Saran Thongthammachat, Chairman of the Thai Hire Purchase Association, revealed that 12 leasing service providers meet initial qualifications for TCG’s loan guarantees. Providers with commercial pickup truck leasing products can utilize TCG’s guarantees through the “Krap Phi Mee Khlang Kam” measure, with applications accepted from October 15, 2025, to December 30, 2025.
Mr. Sitthikorn emphasized that the amendment to the announcement significantly empowers the SME Bank to guarantee at least 80% of commercial pickup truck leasing loan providers. This move is expected to enhance SMEs’ access to pickup trucks crucial for their businesses. The SBG will work with these providers to sign a Memorandum of Understanding (MOU) to start offering guarantees for hire-purchase and leasing loans.