TCG set to provide loan guarantees to non-banks

25-Sep-2021 Intellasia | BangkokPost | 7:05 AM Print This Post

Thai Credit Guarantee Corporation (TCG) stands ready to provide guarantees for loans offered by non-bank institutions, says acting general manager Wasukarn Visansawatdi.

Wasukarn said TCG’s by-laws authorise it to provide loan guarantees to non-banks, but it still has to wait for the finance ministry to issue regulations to determine the related rules, including the qualifications of non-banks to which TCG can provide the loan guarantee service.

She said providing loan guarantees to non-banks will help TCG expand into new markets and retail borrowers gain better access to loans, avoiding loan sharks.

Providing loan guarantees to non-bank institutions could also encourage them to offer lower interest rates to borrowers, said Wasukarn.

Most retail borrowers have borrowed from non-banks, such as consumer finance companies, as they do not qualify for bank loans.

She said the value of loans TCG has guaranteed for small and medium-sized enterprises (SMEs) is expected to exceed 200 billion baht by the end of this year, of which around 100 billion are loans provided under the Bank of Thailand’s soft loan scheme.

The central bank launched the soft loan scheme worth 250 billion baht to help businesses and individuals survive the impact of the prolonged pandemic.

Last week TCG expanded its guarantees for the central bank’s soft loan scheme by an additional 100 billion baht after the first allocation of 100 billion was exhausted. TCG is open to requests for this loan guarantee until October 9, 2023. The guarantees cover micro-businesses, SMEs and major corporates.

https://www.bangkokpost.com/business/2186815/tcg-set-to-provide-loan-guarantees-to-non-banks

 

Category: Thailand

Print This Post

Leave a Reply

You must be logged in to post a comment.