SCB to offer transformation loans for enterprises in transition, with the hope of inspiring business owners to make upgrades in light of emerging megatrends


       In an effort to hasten the post-pandemic transition of businesses, Siam Commercial Bank will introduce transformation loans in accordance with the Bank of Thailand's Emergency Decree on Rehabilitation Loans in order to fund investments that increase the potential of businesses in light of the global megatrends of a digital and low-carbon society for sustainability. Customers old and new will have easy access to the loan's 2%-per-year introductory interest rate and 10-year repayment term, removing a major roadblock for business owners seeking long-term growth. 



       Siam Commercial Bank Chief Executive Officer Kris Chantanotoke said that the Bank of Thailand has updated its guidelines for its "Rehabilitation Loan" program to include "Transformation Loans" to encourage business owners to make necessary reforms to their operations and boost their competitiveness moving forward. Three types of investments are targeted by the loans, including those that adopt digital technology to improve corporate efficiency, those that promote environmental sustainability, and those that fund investments in innovations of the future.  As a member of the SCBX Financial Group that focuses on technology development in tandem with the 2050 Net Zero mission in support of businesses to avoid all forms of greenhouse gas emissions, Siam Commercial Bank is prepared to respond to the Bank of Thailand's guidelines by providing transformation credit lines under the Loan Rehabilitation Decree for all types of business entrepreneurs seeking to transition their businesses and increase competitiveness in the new context of current global trade. 


       SCB transformation loans are intended to help businesses expand their capabilities. Entrepreneurs should focus on the BOT's three areas of focus—digital technology, eco-friendliness, and innovation—to adapt to the changing business climate.  Each loan will be accessible for up to 150 million baht (including all soft loan and transformation loans) with a payback period of up to ten years and a special interest rate of 2% per year for the first two years of the contract. With the support of the Ministry of Finance, borrowers will receive a six-month interest-free period. During the first five years of the contract, the average annual interest rate will not exceed 5%, and borrowers may use real estate, deposits, and Thai Credit Guarantee Corporation guarantees as collateral.


        Kris Chantanotoke added that, “As a result of the increase in the policy interest rate, entrepreneurs are confronted with additional challenges in obtaining financing. Despite the Bank's decision not to raise loan rates, entrepreneurs must strive to overcome emerging challenges to position their companies to be competitive in the next stage of the economy's development.  Transformation loans will be made available to further facilitate business owners' access to technology alternatives that drive revenue and decrease expenses.  It also provides them with a chance to make their companies eco-friendlier and grow in tandem with society in a healthy, sustainable way.”


        As of 1 August 2022, Siam Commercial Bank had reserved 23.249 billion baht for 7,851 businesses under the Bank of Thailand's rehabilitation soft credit scheme, which had a total allocation of 250 billion baht.


        Interested entrepreneurs, both current and new customers, can apply for rehabilitation loans for transformation under the Bank of Thailand's Transformation Loan Decree from 5 September 2022 – 9 April 2023 at any SCB branch nationwide. For more information, please reach out to your designated Relationship Manager or contact our SCB Business Call Center at 02 722 2222.