Bangkok: The SME Bank has announced a reduction in its Prime Rate to 5.85% per annum, effective May 13, marking the second such reduction this year.
According to Thai News Agency, this decision follows the Monetary Policy Committee's (MPC) recent move to decrease the policy interest rate by 0.25%, bringing it down from 2.00% to 1.75% per annum as of April 30, 2025. This adjustment aligns with the prevailing economic trends, inflation, monetary policy, and global trade conditions. Mr. Sittikorn Direksunthon, Director and General Manager of the Small Industry Credit Guarantee Corporation (TCG), reaffirmed TCG's commitment to government policies by announcing the Prime Rate reduction by 0.05% to 5.85% per annum. This adjustment aims to support SME entrepreneurs and debtors who have consistently met their claim payments.
Earlier this year, the SME Bank had already implemented a 0.15% reduction in the Prime Rate to 5.90% per annum, effective from March 6, 2025. This reflects the bank's ongoing commitment to alleviating financial burdens for SME entrepreneurs, allowing them to sustain their businesses amidst the fluctuating economy. The bank has introduced measures like the 'SME Bank Ready to Help' initiative, also known as the 3-color measure: purple, yellow, and green, designed to assist SME debtors in reducing, paying off, and solving debts sustainably. These measures aim to bolster debt repayment capabilities, offering extensions of up to 7 years, prioritizing principal reduction before interest, and even providing interest-free options to facilitate a return to being regular debtors.
Moreover, for SMEs aiming to eliminate debt, the SME Bank offers special assistance by reducing the principal by up to 30% and freezing interest, thereby extending the support to ensure SMEs can continue progressing.