Thai Credit Guarantee Corporation (TCG) wants to expand its guarantees for the Bank of Thailand's soft loan scheme by an additional 100 billion baht as the first guaranteed amount of 100 billion baht is nearing the ceiling.
TCG plans to seek approval for the additional amount from the Finance Ministry.
The corporation expects to provide guarantees for the additional 100 billion baht in September, said TCG acting general manager Wasukarn Visansawatdi.
The central bank launched the soft loan scheme worth 250 billion baht to help businesses and individuals survive the impact of the pandemic.
From late April to Aug 16, TCG provided guarantees of around 80 billion baht for such loans, covering 26,000 borrowers, for the first guaranteed amount of 100 billion baht, said Mrs Wasukarn.
Around 30% of the businesses receiving guarantees in this scheme are in the service sector, such as hotel and tourism businesses, while 13% are in trading, 10% in food and beverage and 40% in other businesses.
The central bank's amended soft loan scheme began on April 26 this year and is scheduled to end on Oct 9, 2023.
TCG's maximum guarantee per borrower is set at 150 million baht, with a maximum guarantee term of 10 years.
The guarantee fee is 1.75% per year.
Year-to-date, TCG has provided a total of 144 billion baht of loan guarantees to its customers, including those in the central bank's scheme.
The total amount is expected to reach 200 billion baht at the end of this year, significantly higher than the 141 billion tallied last year, she said.
TCG is able to service 10,000 requests for loan guarantees per day.
