Bridge Capital Management Co Ltd aims to be a new funding source for small and medium-sized enterprises (SMEs) in the Thai market as it foresees greater opportunities amid sluggish SME loan growth in the banking sector.
The company plans to finance real estate-backed SME loans with an investment participation feature, commonly known as secured private credit, the first such product offered in Thailand.
For SME loans, the company allows private investors to jointly provide funding to the borrower, said managing director Titiwat Kuvijitsuwan.
Bridge Capital launched the new product in the local market yesterday with the first loan amounting to 40 billion baht, seeking investors to join the deal.
Based on Commerce Ministry regulations, the company is allowed to charge a maximum interest rate for the loan product of 15% per year.
Mr Titiwat said the…
