EXIM Thailand has launched “EXIM Biz Transformation Loan” scheme as the best of its class in the market, offering lowest interest rate of 2% per annum, credit line of up to 100 million baht per entrepreneur and 7-year repayment term. This aims to encourage businesses of all sizes and all sectors, including SMEs, to improve their machinery or factories for higher efficiency or production capacity expansion, uplifting of Thai export goods to meet export standards with higher value added and competitiveness and better responding to demand of consumers in the Next Normal age.  

Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that EXIM Thailand has developed a new credit facility scheme, i.e. “EXIM Biz Transformation Loan,” with endorsement from the Cabinet under the recommendation of the Ministry of Finance on October 12, 2021. The objective of the scheme is to assist and ensure Thai entrepreneurs are well-positioned to produce and export goods to the global markets to compensate for the shortfall in domestic market expansion amid the current economic conditions. The scheme features a long-term credit facility for entrepreneurs of all sizes and all industrial sectors, including SMEs, to finance their machinery or factory improvement, additional investment, or improvement of digital softwares, in order to boost their efficiency in production process and expansion of production capacity with a view to generating Thai goods of high quality and international standards. Emphasis is placed on S-curve industries and related industries affected by the COVID-19 pandemic, such as food processing and processed agriculture, future automotive, electronics, and industries of the future like industrial robotics, digital innovations, and bio-fuels and bio-chemicals, to serve demand of consumers in the New Normal and Next Normal eras looking forward. Total budget for this credit facility scheme is 5,000 million baht.

EXIM Biz Transformation Loan is a credit facility with a special interest rate of 2% per annum in the 1st-2nd years, prime rate -2.00% per annum in the 3rd-5th years and prime rate in the 6th-7th years (prime rate of 5.75% per annum as of October 14, 2021), maximum credit line of 100 million baht per entrepreneur, and maximum repayment term of 7 years including 1-year principal grace period. The credit facility may be secured by a letter of guarantee from Thai Credit Guarantee Corporation (TCG) jointly with a personal guarantee. Free! TCG guarantee fee up to 3 years in conjunction with foreign exchange forward contract worth 1.5 times the credit line amount. The credit facility is available from now until July 31, 2022.

EXIM Thailand President further said that business entities would be able to survive the crisis if they could adapt to the current global changes and embrace the ongoing shifts in consumer behaviors, marketing channels and international trade rules, regulations and measures. EXIM Thailand has thus accelerated development of knowledge base and provision of financial facilities and new financial tools. EXIM Biz Transformation Loan scheme has recently been launched as a new credit facility to “reboot,” “restructure” and “rebalance” Thai entrepreneurs and industrial sectors, particularly SMEs. This aims to empower them to deal with business shortcomings involving such stages as manufacturing and investment for improvement of factories and digital softwares. There would accordingly be fresh opportunities for export start-ups or export expansion with distribution of goods to consumers overseas in both principal markets and new frontiers, leveraging on quality Thai goods to pave the way toward the global markets and having EXIM Thailand to work alongside as the advisor and solution provider for Thai entrepreneurs’ export start-ups or export expansion.    

“EXIM Biz Transformation Loan was an EXIM Thailand’s milestone in collaboration with the Ministry of Finance to offer a financial tool that can fulfill the needs of business sectors and stimulate development of Thai industrial sectors in response to changes in global business world and using technology and innovation as the key to development of Thai goods for higher identity and value added that can suit global market demand. The new credit facility will unlock financial restrictions, with offering of low interest rate, high credit line and long loan repayment term, which will help relieve financial burden of business entities amid the existing crisis and ensure they get prepared to keep pace with the megatrends and respond to demand of Next Normal consumers with higher confidence. This would eventually lead to global economic, social and environmental development on a sustainable basis,” added Dr. Rak.