Thailand’s SME D Bank offers interest-free loans to entrepreneurs

Thailand’s Small and Medium Enterprise Development Bank (SME D Bank) has partnered with the National Innovation Agency (NIA) to offer interest-free loans for up to three years to entrepreneurs developing innovative products and services.

Phichit Mitrawong, Managing Director of SME D Bank, announced this initiative following the signing of a cooperation agreement with the NIA yesterday. The agreement aims to bolster the capabilities of small and medium-sized enterprises (SMEs) through financial support.

SME D Bank and NIA are committed to helping entrepreneurs and startups by providing low-interest funding options. Innovations certified by the NIA will make entrepreneurs eligible for funding through SME D Bank’s Smile Biz loan product. Businesses with at least one year of operations can apply without the need for collateral.

Loan amounts can reach up to 5 million baht, with a repayment period extending to seven years and a principal repayment grace period of up to six months. The starting interest rate is set at 6.5% per year. During the first three years, the NIA will cover the interest costs. Post this period, the bank’s standard interest rates will apply.

Phichit highlighted that the project is designed to foster the development of innovative entrepreneurs.

The initiative aims to provide SMEs and startups with the necessary funding to develop their products or services, thus enhancing their market competitiveness. Phichit stressed the importance of innovation in boosting productivity, adding value to products, and improving market differentiation. Efficient management systems and cost reduction are also critical factors.

Innovation and technology development often entail significant expenses, posing challenges for SMEs and startups. Phichit acknowledged these barriers and emphasized the need for financial support.

Phichit mentioned that SME D Bank offers a platform to aid in various aspects of business development, including financial management, accounting, and product development.

The Development Excellence (DX by SME D Bank) platform is a complimentary service with five key features: Business Health Check, E-Learning, SME D Coach, SME D Activity, and SME D Market. These features collectively assist SMEs and startups in elevating their business capabilities, making them competitive and sustainable in the evolving business landscape.

The Business Health Check system assesses the overall health of businesses, while E-Learning provides essential courses available for self-learning at any time. SME D Coach offers professional business consulting, and SME D Activity facilitates continuous knowledge-enhancing activities. The SME D Market expands business opportunities through an e-marketplace and business matching services.

These comprehensive features aim to transform SMEs and startups into smart, sustainable businesses that can thrive in today’s competitive environment, reported Bangkok Post.