GSB preps subsidiary for SME loans
Lending to use land as collateral
Government Savings Bank (GSB) is preparing to set up a non-bank subsidiary to provide loans based on land collateral to small and medium-sized enterprises (SMEs), says GSB president Vitai Ratanakorn.
He said GSB would own 85% of the subsidiary, with the rest held by a strategic partner.
The new business expects to have capital of 1 billion baht.
The bank is scheduled to propose a plan for the board’s consideration in March, Mr Vitai said.
The non-bank business provides loans to SMEs that place land plots as collateral. For this service, the interest rate is 5.99%, he said.
The…
