Letter of loan guarantee helps keep SMEs afloat amid Covid-19 situation.

By THE NATION

The state-owned Thai Credit Guarantee Corporation (TCG) has issued up to 43,000 letters of guarantee (LG) to operators of small and medium enterprises (SMEs) affected by the Covid-19 outbreak , guaranteeing a total of over Bt24 billion in loans.

“The virus outbreak has driven more SME operators to seek loans to keep their businesses afloat,” said TCG president Rak Vorrakitpokatorn. “In January we issued 14,500 LGs on Bt8.1 billion of loans. The number rose to 21,900 in February on Bt10 billion of lending”.

From March 1-16, TCG issued over 6,500 LGs on a total loan amount of Bt5.8 billion. “Most business operators applied for loans via the Micro Credit and Portfolio Guarantee schemes,” he added.

TCG also organised a promotional campaign with partner banks to allow new and existing customers apply for loans at a maximum sum of Bt30 million each, and be exempted from guarantee fee in the first two years.

“This campaign is valid for loans with a repayment period of up to ten years and we expect it will help us reach the guaranteed loan amount of Bt60 billion,” added Rak.

Other measures to help SME operators during the virus situation include: Extending guarantee period for existing customers under Portfolio Guarantee Scheme by five years with no additional fee; providing up to 12 months of suspended repayment, and free consultation service via Call Center 02-890-9999 and Line application: @doctor.tcg

TCG estimates that in 2020, it will issue up to 110,000 LGs with total guaranteed loan amount of Bt100 billion while supporting up to 83,000 new customers.

Source: https://www.nationthailand.com/news/30384511