The Bank of Thailand is seeking Finance Ministry approval to expand the use of personal loans from non-bank financial institutions to include business purposes.
Such loans are presently allowed only for consumption purposes.
The move is aimed at offering greater opportunities for small enterprises to access funding sources.
Approval of extending the personal loan framework depends on Finance Minister Sommai Phasee and Deputy Prime Minister MR Pridiyathorn Devakula, central bank governor Prasarn Trairatvorakul said.
At present, non-bank financial institutions are restricted to extending personal loans for consumption purposes only.
"Broadening the current definition of personal loans is what we've proposed to the finance minister," Mr Prasarn said.
He said it was up to MR Pridiyathorn, Mr Sommai or other high-ranking officials to decide whether to proceed with the nanofinance scheme or implement both it and the central bank's proposal on the personal loan usage condition amendment.
Under the nanofinancing scheme, interested parties could soon apply for licences and set up a firm to operate retail credit facilities for about 100,000 baht per borrower at a maximum lending rate of 36% a year.
However, those winning a licence could only operate the business in the province where the licence was granted.
The nanofinance service is at the centre of Finance Ministry plans to get rid of loan sharks after banks complained that microcredit, which would allow them to lend up to 200,000 baht apiece to informal workers at 28% interest, was not economically viable.
Mr Prasarn said the central bank also did not have the capacity to supervise local nanofinance lenders in different provinces.
Finance Minister Sommai Phasee recently said nanofinancing would be part of the government's second economic stimulus package.
Yesterday, he said the new stimulus measures would be announced on Dec 9.