Government Savings Bank (GSB) is set to allocate 10 billion baht worth of capital to expand into the repurchase loan market to help small and medium-sized enterprises (SMEs) with liquidity shortages.
The bank is preparing to roll out a new loan product tailored for the repurchase business of SMEs.
The product has been approved by the Bank of Thailand. It is expected that the product will be launched in early November, said GSB president and chief executive Vitai Ratanakorn.
The new offering is one of the bank’s financial products aimed at supporting SMEs that lack financial liquidity and are unable to use existing securities in order to seek loans from financial institutions, as this contradicts the lending criteria set by the Bank of Thailand, Mr Vitai said.
SMEs have therefore opted to seek loans from the repurchase business, which operates in the informal loan…
