Details of the 'Tourism Business' Soft Loan from 'Government Savings Bank' Amounting to 15 Billion Baht and Conditions for Loan Application

'Government Savings Bank' is moving forward to expand access to soft loans for tourism operators and related businesses, with a total loan amount of 15 billion baht as approved by the Cabinet, starting this September.

Witthaya Rattanakorn, Director of Government Savings Bank revealed that following the Cabinet's resolution on August 18, there has been an approval to revise the guidelines for financial assistance to SMEs affected directly and indirectly by the Covid-19 pandemic.

The bank has updated its approach to providing low-interest loans, or soft loans, totaling 15 billion baht, focusing on assisting tourism business operators through two main projects as follows:

1. Low-interest loan project for the recovery of Thai tourism, with a budget of 10 billion baht.

This low-interest loan for the recovery of Thai tourism, with a project budget of 10 billion baht, aims to support tourism operators and related businesses or supply chains affected directly and indirectly by the Covid-19 crisis.

The maximum loan amount is 20 million baht per entity, with the Government Savings Bank providing loans to both commercial banks and state financial institutions at an interest rate of 0.01% per annum, allowing those institutions to lend to operators at an interest rate of 2.00% per annum. This is expected to commence around mid-September 2020.

2. Low-interest loan project to assist SMEs in the tourism sector, with a budget of 5 billion baht, focusing on supporting small and medium-sized enterprises in production, services, commerce, and supply chains within the tourism sector that have been affected, such as restaurants, spas, traditional Thai massage, tour transportation, accommodation services, guesthouses, and hostels. This will allow businesses to use the loan amount as working capital to enhance liquidity.

Eligible operators who have been in business for at least 2 years can receive a maximum loan of 500,000 baht, with a fixed interest rate of 3.99% per annum throughout the contract duration (5 years), requiring personal guarantees and a one-year principal payment holiday.

For more details, inquiries can be made at the Information Service Center 1115 or at any branch of Government Savings Bank.

SOURCE: www.bangkokbiznews.com