Bangkok Bank is ready to offer a “loan payment holiday” and credit support for SME customers affected by COVID-19 who meet the qualifications as announced by the BOT, with the aim to provide them with sufficient funds and liquidity to operate their businesses and retain their employees during the COVID-19 outbreak. The Bank aims to provide financial assistance efficiently and directly to those affected by the pandemic and has already submitted the first set of requests for soft loans to the BOT.
Bangkok Bank Senior Executive Vice President Suvarn Thansathit said in response to the government’s issuance of a Royal Decree granting financial assistance to entrepreneurs affected by the COVID-19 outbreak, Bangkok Bank has provided clear information and details about the said measures as soon as possible to SMEs who meet the qualifications. The Bank has already submitted the first set of requests, mostly from retail entrepreneurs, for soft loans to the BOT.
The new soft loans are for entrepreneurs who are juristic persons or individuals with a business registered, located and operated in Thailand. The business must not be registered within the Stock Exchange of Thailand (SET) or the Market for Alternative Investment (MAI). The loan is also for financial service providers. Business operators must have a credit line with the Bank not exceeding 500 million baht. Repayment status must be normal or not more than 90 days overdue (not yet an NPL) as of December 31, 2019 as the loan aims to help businesses affected by COVID-19. Customers can apply for a loan amount not exceeding 20% of their loan outstanding at the end of December 2019. The loan’s concessional interest rate is not more than 2% for two years. The government will bear the interest burden of the entrepreneur for the first six months. The Bank will not charge any additional expenses or fees including front end fees. The Bank reserves the right to consider lending to qualified applicants.
Entrepreneurs who are juristic persons or individuals operating businesses in Thailand with a credit line for the whole business group with the Bank not exceeding 100 million, under normal repayment status or not exceeding 90 days overdue repayment (not yet an NPL) as of December 31, 2019, are automatically eligible to suspend payments of both principal and interest for six months from April 23 to October 22, 2020. This loan payment holiday will not be considered as a missed payment and thus will not affect the credit history of the business. This relief measure will provide entrepreneurs with enough cash on hand to support their businesses and meet necessary expenses, especially wages. Entrepreneurs who do not wish to receive this relief measure are requested to send a confirmation letter to the Bank and repay their loans as usual.
“The Bank stands ready to work closely with business operators and help them to get through this crisis by providing advice on debt restructuring, adjusting loan payments in line with their income, and adjusting financial terms as appropriate to the customer’s business. This will prevent loans from turning into nonperforming loans which would impact customers’ credit history and have a negative impact on future loan applications”, Mr. Suvarn added.
Those who interested can ask for more information and advice from the Bank’s relationship officers, contact Bualuang Phone 1333 or 0 2645 5555, or visit https://www.bangkokbank.com/th-TH/COVID19-Update