Krungsri launches 2% interest loans to support SMEs digital technology transformation and boost their long-term competitive advantage in post-pandemic business recovery

Ms. Duangkamol Limpuangthip, Krungsri Head of SME Banking Group, said, "We are offering this Transformation Loan to SMEs as part of a cooperation project between the Bank of Thailand (BOT) and Krungsri under the BOT's soft loan scheme to help businesses affected by the COVID-19 global pandemic. Providing Soft Loans to small businesses also aligns with the Bank's vision of environmental, social and governance (ESG) driven sustainable growth as well as providing loans to businesses aligned with ESG principles."

"The Transformation Loan has a maximum term of seven years and credit line up to 150 million baht. The interest for the first two years is fixed at 2% per annum, and maximum 7% per annum during the third to the fifth years. From the sixth year onwards, the rate will be set by the Bank according to market conditions. During the loan, interest will be waived for the six months, fees will be waived and there is a credit line up to 150 million baht. This loan will support SME business owners whose business has been affected by the pandemic and enable them to adapt and compete during their business recovery phase. It will also help businesses develop and enhance their business potential in line with the demands of the New Normal world. There are three important areas business should focus on: first, they should boost investment in digital technology to improve business efficiency and build resilience. This means incorporating automated systems or robotics to improve their manufacturing or service capabilities. Secondly, they should invest in technologies and innovations that enhance the competitiveness and stability of their business or help develop new products or services that respond to changing demands and are ready for the future. This includes investing in new equipment and tools that power new business models and create new opportunities. The third element is creating an environmentally friendly ecosystem. This means investing in energy-saving systems or adopting renewable and clean energy. For example, this could see the design and development of environmentally friendly goods and services, or investments in machinery to support the expansion of electric or clean energy vehicles."

The Bank also supports sustainable loans for entrepreneurs who want to include in alternative energy products into their business, such as solar rooftops. It also encourages businesses to use alternative energy and increase the use of clean energy to reduce energy costs. The more bank has organized ESG strategy seminars to educate businesses on the benefits of sustainable growth and how this can create a competitive advantage.

Entrepreneurs who are interested in a transformation loan can contact the Relationship Manager or Krungsri Business Center 02 626 2626.

• ข่าวBank of Thailand
• ข่าวBank of Ayudhya
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