Bangkok: The SME Bank is preparing to launch a new project aimed at expanding its guarantees for the non-bank sector to stimulate the economy towards the end of the year. During the first nine months of 2025, the bank guaranteed a total of 29.695 billion baht in loans.
According to Thai News Agency, Sitthikorn Direksunthon, Director and General Manager of the Small and Medium Enterprise Credit Guarantee Corporation (TCG), disclosed that the company’s performance in the first nine months of 2025 (January-September) saw a total of 29.695 billion baht in loan guarantees. This was achieved through two main projects: the government-sponsored loan guarantee program, contributing 54% with 15.984 billion baht, assisting 33,625 SMEs; and the TCG-operated loan guarantee program, contributing 46% with 13.711 billion baht, supporting 3,875 SMEs. The PGS 11 “TCG Sustainable SMEs” loan guarantee program, with a 50 billion baht credit limit, forms part of this initiative.
The loan guarantee measure focuses on helping SMEs reduce their financial burdens by offering a free guarantee fee for the initial 2-4 years. In subsequent years, the fee will be based on the remaining credit limit, maintaining a rate of 1.5-1.75% per year. Since the project’s inception in July 2024 until September 30, 2025, the total guarantee amount reached 44.517 billion baht, aiding over 62,703 SMEs. This initiative has generated over 122.64 billion baht in economic value, assisting 37,285 SMEs in obtaining additional loans. Micro SMEs, comprising 84% of these, secured an average of 150,000 baht per loan, while the remaining SMEs received an average of 4.4 million baht per loan. These efforts resulted in over 39,335 million baht in loans within the financial institution system and helped maintain 401,871 jobs. The service sector, food and beverage, and agriculture are the top three business types receiving loan guarantees, accounting for 51% of the total guarantees.
Mr. Sitthikorn highlighted that the high proportion of micro-SMEs accessing loans through the SME Bank’s guarantees demonstrates the success of its mechanism in aiding groups lacking collateral or personal guarantors to access formal loans more easily.
Economic challenges, including trade wars and various risk factors, have impacted Thai SMEs throughout the year, causing liquidity issues and limited access to formal funding. The government has responded with the “Quick Big Win” policy to provide urgent liquidity to SMEs. Mr. Sitthikorn stated that the SME Bank is aligning with the government’s policy by preparing new loan guarantee measures to enhance liquidity for SMEs during the peak year-end travel season. This initiative seeks to encourage financial institutions to extend loans to those lacking collateral, thereby reducing credit cost risks for SMEs and enhancing credit opportunities.
In the first nine months of 2025, the SME Bank has also successfully implemented its “SME Bank Ready to Help” debt restructuring program, offering a range of benefits to debtors. Since the launch of the “TCG Ready to Help” measure in 2022, 22,481 debts have been restructured, totaling 14.56 billion baht, with significant progress made in 2025.
A notable change in the third quarter was the amendment to the Ministry of Finance’s announcement, allowing the SME Bank to expand loan guarantees to include non-bank lenders. This development aims to “unlock” SME access to credit, with the SME Bank ready to provide guarantees for non-bank business operators, including “nano-finance” and “leasing,” in the final quarter of the year.
SME entrepreneurs seeking to enhance liquidity and access formal credit can register for consultations via Line OA: @tcgfirst. The SME Financial Advisory Center is also available to provide guidance on funding sources, debt resolution, and financial knowledge, offering free consultations and financial health checks to prepare SMEs before applying for credit.