The state-owned Export-Import Bank of Thailand (Exim Bank) has rolled out a low-interest rate loan scheme bundled with free credit insurance, targeting small and medium-sized enterprises (SMEs) engaged in exports.
Each borrower is eligible to seek up to 50 million baht through Exim Export Credit Plus, which charges two different interest rates for those who borrow in terms of the baht and the US dollar, said president Pisit Serewiwattana.
Loan applicants are required to put collateral worth 25% of the total loan. Those who secure loans in baht are charged at 4.5% for the first year and prime rate minus 1% for the second year. The bank's prime rate stands at 6.25%. For those who borrow in US dollars, they are charged the London Interbank Offered Rate (Libor) plus 3% for the first year and Libor plus 3.5% for the second year.
Mr Pisit estimated that SMEs will borrow around 3 billion baht to fund turnovers estimated at 10 billion. The bank not only charges debtors at a cheaper rate than normal but it also helps exporters save on credit insurance premiums, which cost 0.5-2% of export value.
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