Bangkok: The SME Bank has announced a reduction in its Prime Rate to 5.60% per year, effective from August 15th, following the decision made by the Monetary Policy Committee (MPC) to lower the policy interest rate. This adjustment aims to align with prevailing economic trends and provide relief to debtors benefiting from the Small and Medium Enterprise Credit Guarantee Corporation (TCG).

According to Thai News Agency, the MPC meeting on August 13, 2025, led to a resolution to decrease the policy interest rate by 0.25%, changing it from 1.75% to 1.50% per annum. This step was taken in response to factors such as US tax measures, inflation, monetary policy adjustments, and global trade dynamics. Mr. Sitthikorn Direksunthon, Director and General Manager of TCG, announced a corresponding 0.25% reduction in the Prime Rate, noting that this is the lowest rate available and aims to support debtors with consistently paid claims through TCG. This marks the third rate reduction this year, following a 0.15% decrease in March and a subsequent 0.05% reduction in May.

Since its inception, SME Bank has been dedicated to aiding small and medium enterprises (SMEs) by alleviating financial burdens, thereby enabling them to navigate economic challenges and the ongoing trade war. Currently, the bank is offering support through the "SME Bank Ready to Help" program, which includes extending debt repayment terms to seven years and offering more manageable repayment options. The program also provides a 0% interest rate and prioritizes principal reduction, helping debtors revert to a normal debt status efficiently. For those looking to eliminate their debts, SME Bank offers additional support, such as a principal reduction of up to 30% and interest waivers, facilitating sustainable debt recovery.