Banks target SMEs in loan lending

BANGKOK, 21 December 2009 (NNT) – Siam Commercial Bank (SCB) has set plans to lend more to Small and Medium Enterprises (SMEs) by using pricing strategies to attract them.

SCB Executive Vice President Wareemon Niyomthai said SME loans would grow more next year but the increase would not be drastic due to stalled investments in the Map Ta Phut industrial estate and Dubai crisis.

Currently, Kasikorn Bank is the market leader in SME loans.

Kasikorn Bank Deputy Managing Director, Pakorn Panapaet, said loan interests were not the main factor influencing SMEs’ decisions to borrow. Mr Pakorn said the success of SME loans was to address the needs of SMEs who wanted a sufficient loan amount and quickly approved loans.

Meanwhile, the Thai Military Bank (TMB) aims for 20% growth in SME loans. Boontuck Wungcharoen, TMB Chief Executive Officer, stated that it is important that SMEs were granted the right amount of loans with the right repayment period.