Economic activity

GSB provides loans worth 1.5 billion baht to small businesses

The Government Savings Bank (GSB) has provided loans worth about 1.5 billion baht over the past three months to small businesses suffering from the impact of the Covid-19 pandemic, the president said of the bank, Vitai Ratanakorn.

A loan program totaling 5 billion baht was launched at the end of December last year, in line with the government’s policy that GSB create jobs to mitigate the impact of the pandemic and revive the flagging economy.

Mr. Vitai said that over the past three months, the bank has granted 1.44 billion baht to 30,000 borrowers, consisting of those who want money to start businesses, small businesses, wholesale and retail, taxi drivers, online merchants and franchise businesses.

The program offers loans of 50,000 to 300,000 baht with an interest rate of 3.99% per annum for the duration of the loan. The repayment period can be up to five years with a grace period of six months. The program is due to end on September 30, or once the loan funds are fully borrowed.

In addition to extending the loan, the bank provided vocational training to 15,000 people during the same period. It is targeting 50,000 participants in the training program this year.

GSB said earlier that its motorcycle and car title lending joint venture plans to lend about 20 billion baht this year, up 25% from last year, in a bid to provide loans to increase the liquidity of low-income people.

GSB entered the auto title lending segment in 2020 by acquiring a 49% stake in Fast Money Co Ltd, which was previously wholly owned by Srisawad Corporation. Last year, Fast Money extended loans worth more than 16 billion baht at an annual interest rate of 11% to more than 800,000 low-income people.