Bangkok: The Government Savings Bank (GSB) is set to launch a significant financial initiative, offering a 100 billion baht soft loan to Small and Medium Enterprises (SMEs) at an exceptionally low interest rate. This move is part of the bank's efforts to stimulate economic growth and provide necessary financial support to grassroots businesses.
According to Thai News Agency, the GSB believes that the "Half-Half" scheme will play a crucial role in boosting the economy. The bank suggests that if the scheme proves beneficial, the "Paotang" program should consider sharing trading data to facilitate liquidity loans for merchants. Other recommendations include exploring online channels and reducing VAT for specific groups in the short term. The bank is positioning itself as a key player in supporting SMEs and is considering injecting soft loans for banks at an interest rate of just 3.50%.
Mr. Wirachai Amornratkulsuwet, Acting President of the GSB, emphasized the potential of the government's "Half-Half" policy to enhance the economic cycle and boost consumer confidence. He also highlighted the need for additional measures such as sector-specific VAT reductions and expanding online channels for entrepreneurs. Sharing data from the "Kon La Khrueng" (Half-Half) scheme through the Pao Tang app could also help small businesses access formal funding.
The GSB is committed to supporting the government's economic stimulus policy by implementing its social banking strategy. This strategy aims to reduce financial inequality and provide fair access to funding for grassroots groups and SMEs. The bank has previously implemented key loan projects, such as the GSB D-Home real estate stimulus loan and the GSB Boost Up Plus soft loan project.
Under the new initiative, additional soft loans totaling 100 billion baht will be issued at an interest rate of just 0.01% per annum. Financial institutions participating in this initiative will be able to extend these loans to SMEs at an interest rate not exceeding 3.50% per annum for the first two years. The goal is to enhance liquidity and provide continuous access to formal funding sources for Thai businesses.
Moreover, the bank is focusing on supporting the grassroots economy by assisting low-income earners and those without previous access to credit. As of June 30, 2025, the bank has provided assistance to over 680,000 borrowers through social loan innovations and helped over 800,000 borrowers resolve debt issues.
Mr. Wirachai announced plans to expand the bank's social impact efforts, aiming to assist at least 2 million vulnerable groups annually. The bank will integrate AI technology and innovation to improve financial operations, including AI Optimized Loan Processing and Underwriting, and AI Chatbot for Branch. These initiatives are set to launch in the fourth quarter of this year, aiming to enhance comprehensive financial services and promote sustainable growth of the grassroots economy.