Bangkok--26 Apr--KASIKORNBANK
KASIKORNBANK introduces “K-SME Credit: Easy and Worry-Free” designed especially to provide access to formal funding sources for small operators who are running cash businesses. The Bank targets to offer 5 billion Baht of loans to 2,000 SME operators under the program.
KASIKORNBANK Executive Vice President Mr. Patchara Samalapa said out of a total 2.6 million SME nationwide, some 700,000 small business operators are running cash businesses and making transactions via the Bank’s accounts. These small businessmen may be infrequent customers and have no transaction-related evidences to apply for bank loans. Thus, these entrepreneurs usually go for informal funding sources which charge high interest rates and eventually result in too high operating costs, an obstacle for long-term business undertakings.
In response, KBank offers “K-SME Credit: Easy and Worry-Free” especially to provide a credit limit to serve these small businesses with aforementioned constraints.
To verify customers’ payment ability, the Bank examines customers’ other business evidences including sale slips, order documents, water and electricity bills. The Bank may also visit the business sites and inventories.
SMEs eligible for the loan must have at least two years of business experience with good financial records and a total sale of no more than 50 million Baht per year. A variety of products are offered for customers to choose one that matches their demand, including commercial loan (L/N), overdraft loan (O/D), promissory note (P/N), and Letter of indemnity (L/I). Credit limits amounting 500,000 Baht to 10 million Baht are available with maximum installment period of five years. Property assets stipulated by the Bank can be used as loan collateral.
Mr. Patchara added that the Bank expects to provide 5 billion Baht of loans under this program for 2,000 small business operators who are in retail-wholesale trade, service business, manufacturing, or other businesses. For more information, please contact the Bank’s SMEs Business Center nationwide or K-Biz Contact Center by calling 02-888-8888.