Bangkok: The SME Bank has partnered with ‘Ngern Dee Dee’, a subsidiary of the Government Savings Bank, to launch Thailand’s first digital loan guarantee service via the Good Money application. This initiative introduces a comprehensive Digital Lending service alongside a Digital Credit Guarantee, enabling seamless loan application tracking. This development aims to empower ‘vulnerable groups’, particularly Micro SMEs, by simplifying access to loans through the SME Micro Biz guarantee project, with credit limits starting at 10,000 baht. Applications and guarantees have been open since July 15.
According to Thai News Agency, Mr. Sitthikorn Direksunthon, Director and General Manager of the Small Industry Credit Guarantee Corporation (TCG), emphasized the significance of this collaboration with ‘Ngern Dee Dee’. This partnership aims to enhance digital accessibility for mobile users, addressing the financial challenges faced by ‘vulnerable groups’ by offering a streamlined loan application process via the Good Money app. The digital loan guarantee by the SME Bank is a pivotal mechanism to enhance confidence among borrowers and financial institutions, encouraging increased lending activities.
‘Good Money’ stands as the first non-bank financial operator to collaborate with TCG, offering retail loans with a fully digital guarantee. This marks a transformative milestone in Thailand, paving the way for a full Digital Lending service coupled with a Digital Credit Guarantee. It aligns with TCG’s strategic vision of evolving into a provider of advanced financial services through Virtual Banking, thereby augmenting support for SME entrepreneurs across the nation.
Mr. Sitthikorn highlighted the collaboration’s role in evolving SME Bank’s role from traditional guarantors to innovators in financial technology. This initiative is foundational in crafting a financial ecosystem for small enterprises, interconnected through technological advancements, and positions SME Bank as a key player in the forthcoming Digital and Virtual Banking landscape.
The SME Bank’s strategy focuses on alleviating financial burdens for vulnerable groups and micro SMEs, in alignment with government policies, by guaranteeing loans through the ‘SME Bank Ready to Guarantee’ measure within the ‘SMEs Micro Biz Project’. The project allocates a total guarantee amount of 2 billion baht, offering guarantees ranging from 10,000 to 500,000 baht per individual. A noteworthy feature is the waiver of the guarantee fee for the initial three years, followed by a 1.5% annual fee on the remaining guarantee amount. The guarantee extends over a 7-year span and is a ‘special measure’ designed to stimulate financial institutions to provide loans to those lacking guarantors and collateral, with a high claim payment rate to mitigate credit cost risks.
Additionally, a debt resolution initiative, “SBG is ready to help”, offers relief to all debtors, featuring a principal-first repayment approach with a 0% interest rate over 7 years and up to a 30% principal discount for debtors seeking debt clearance.
The SME Bank aims to guarantee loans worth at least 500 million baht for small SMEs by year’s end. This initiative is expected to facilitate loans amounting to 500 million baht, benefiting over 10,000 SMEs, preserving 4,615 jobs, and generating economic benefits exceeding 2 billion baht.
Ms. Sirinan Jiradilok, Managing Director of Ngern Dee Dee Co., Ltd., stated that the Good Money application aims to provide equitable capital access to small investors. She believes this collaboration will enhance customer confidence and broaden entrepreneurial opportunities for business initiation or recovery with appropriate costs. ‘Ngern Dee Dee’ has launched a ‘Nano Good Money SME Bank’ loan, offering a maximum credit limit of 100,000 baht per person, with up to 4 years or 48 months repayment period, and an interest rate ranging from 28% to 33% per annum, with a maximum of 28% if SME Bank acts as a guarantor.
The Good Money application caters to digital-age preferences with features such as mobile-based loan applications, minimal documentation, straightforward steps, rapid results, and competitive interest rates. The project’s long-term objective is to foster collaboration among government, private sector, and technology entities to establish a comprehensive and sustainable financial model for SME entrepreneurs nationwide.
SMEs interested in applying for loans and guarantees via the Good Money application are encouraged to visit LINE OA: @tcgfirst. The SME Bank provides tools to assess financial health and offers free consultation appointments without any charges. They recommend applying for the ‘Nano Good Money SME Bank’ loan or contacting the SME Bank Call Center at 02-890-9999 for more information, advising borrowers to seek only necessary and repayable loans.