The Cabinet, during its meeting on 11 June 2024, approved an “IGNITE THAILAND” credit extension program to support small and medium-sized enterprises (SMEs) that have already been operating for at least one year.

The objective is to enable SMEs to have greater access to funding sources in financial institutions, so that they will be able to develop their potential for doing business. This will also move the Thai economy forward and upgrade Thailand into a global industrial hub, as announced by the Government in “Thailand Vision IGNITE THAILAND.”

The credit guarantee fund program targets three sectors: tourism, wellness and medical, and agriculture and food. It will also be expanded to cover community enterprises and micro SMEs that are involved with the three sectors.

The program will make available five billion baht in low-interest loans. Out of this fund, 1.5 billion baht will be offered to the Tourism Hub group, another 1.5 billion baht to the Wellness and Medical Hub group, and two billion baht to the Agriculture and Food Hub group.

Each borrower is allowed to secure not more than 10 million baht, with a loan term of up to 10 years and a grace period of up to six months. It must be able to repay the loan in accordance with the requirements set by the Government Savings Bank. The interest rate starts from 2.5 percent annually for the first two years.

The IGNITE THAILAND credit extension program began on the day when the Cabinet approved the program and will continue until 30 December 2025, or when the credit under the program runs out. 

The Government Savings Bank will complete its loan extension in this program by 30 December 2026.