Only 17% of SMEs have access to loans

[webfact]

Only 17% of SMEs have access to loans

 

 

BANGKOK, 26 July 2018 (NNT) - Puey Ungphakorn Institute for Economic Research (PIER) has revealed that only a handful of small and medium enterprises (SMEs) have access to financial loans. 

Natha Wasee, a senior PIER researcher, claimed that out of 3 million SME operators in Thailand, only 520,000 or 17% have access to loans. The research was conducted based on the information provided to the Bank of Thailand by 15 commercial banks. 

Regarding loan schemes, general loans which account for 34% are the most popular type, followed by hire-purchase loans at 33% and overdraft loans at 25%. 

The research also shows that there is 251 billion baht worth of non-performing loans (NPLs), which account for 6.22% of the total outstanding debt amount. 

Natha also urged financial institutions to use this information to develop a lenient loan policy to allow more SME operators to have access to financial loans.

 

-- nnt 2018-07-26

[bluesofa]

It's one thing to urge banks to give more loans, but judging by another thread how a teacher didn't seem to understand she was personally liable as a guarantor, maybe it's not so surprising.

 

I see non-performing loans are now quoted as 6% of total outstanding debt. IIRC, about 20 years ago wasn't it something like 20%(?) when banks were lending cash left, right and centre. One of the contributing factors to Thailand borrowing from the IMF.

 

[coulson]

1 hour ago, webfact said:

Natha also urged financial institutions to use this information to develop a lenient loan policy to allow more SME operators to have access to financial loans

The only thing they care about is non performing loans, and how to recover that money.

 

Isn't it the job of the Government to tackle this?

[Cake Monster]

" Have access to Loans "

Not a single mention as to whether these Loans are of a " Secured " nature.

If they are, I suspect its against the purchase of the absolutely essential new Pickup Truck / Fortuna for the business.

7.75 M Debt on average per business = Not good.