KBank introduces new loan product to help small businesses

Stocks News Tuesday September 1, 2015 18:40 —PRESS RELEASE LOCAL

Bangkok--1 Sep--KASIKORNBANK Amid today's sluggish economic conditions, KASIKORNBANK (KBank) offers assistance for small merchants, street stalls and producers with total annual sales of 10 million Baht or less by introducing "Micro Loan" for their working capital or business expansion. Maximum credit limit of the 5-year loan is 3 million Baht, while the interest rate is MRR+3 percent. The move is aimed at strengthening small SME entrepreneurs. Within this year, KBank expects to extend at least 5.3 billion Baht of loans under this product. According to Mr. Alongkot Boonmasuk , KBank First Vice President , the SME business is popular among Thais, who usually begin with a small-sized or family business. According to a survey, there are nearly 2.1 million small businesses across Thailand, but only 338,000 of them can access official funding sources from financial institutions, with a total credit sum of 949 billion Baht. Most startup operators, particularly those in the new generation, usually invest with their own or their family's savings, and seek personal loans or informal "shark" loans to offset funding shortfalls. They soon face a high interest burden which limits opportunities for efficient business operations and future expansion. KBank, therefore, has launched "Micro Loan" to support these small businesses, both in the service sector, e.g., restaurants, coffee shops, laundries, mobile phone sales or repair businesses, flower shops, etc., and small entities in the manufacturing sector, such as parts manufacturers, food and beverage producers, etc. Eligible borrowers — with or without business registration at the Ministry of Commerce — are those with a record of at least three years of operations and total annual sales of 10 million Baht or less. "Micro Loan" offers a credit line of up to 80 percent of appraised collateral prices. The credit may be extended through overdraft loan (O/D). Maximum credit limit of the 5-year loan is 3 million Baht, while the interest rate is MRR+3 percent. KBank's MRR currently stands at 7.87 percent. No complex documentation is needed for loan application, while additional financial services are also available for customer convenience. KBank plans to extend 5.3 billion Baht of loans under this product within the last four months of 2015. Interested persons may apply for a loan at any KBank branch, or ask for more information by calling the K-BIZ Contact Center at Tel. 02 8888822. Mr. Alongkot adds that KBank is the market leader in SME loans. Amid the current economic slowdown, the "Micro Loan" service will enable small entrepreneurs to access a new funding source, with lower funding costs than other types of loans, to finance their operations and provide working capital. Representing a large number of operators and total business value, this customer group is a cornerstone of the Thai economy.

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