The Small and Medium Enterprise Development Bank of Thailand (SME D Bank) has teamed up with the National Innovation Agency (NIA) to support entrepreneurs who have developed innovations by providing them with interest-free loans for a period of up to three years.
Speaking after signing a cooperation agreement between SME D Bank and the NIA on Wednesday, Phichit Mitrawong, SME D Bank's managing director, said the signing of the agreement aims to enhance the capabilities of SMEs.
SME D Bank and the NIA are ready to assist entrepreneurs or startups with their innovations by providing access to a low-interest source of funding.
In cases when entrepreneurs show strong potential and have developed useful innovations that are certified by the NIA, they would be able to access funds from SME D Bank through the "Smile Biz" loan product. The conditions are reasonable -- businesses that have operated for just one year can apply for a loan without requiring collateral.
The maximum loan amount is 5 million baht, with a repayment period of up to seven years and a principal repayment grace period of up to six months.
The starting interest rate is 6.5% per year, but the NIA will help cover the interest burden for entrepreneurs during the first three years of the loan. After that, the bank's normal interest rate would apply, said Mr Phichit.
He emphasised that the project aims to promote and develop the potential of innovative entrepreneurs.
The objective is to support SMEs or startups with useful innovations in accessing funding sources and assisiting with development to elevate and develop their products or services, thereby increasing their competitiveness.
Mr Phichit noted that the business world is highly competitive, and Thai SMEs need to adapt and enhance their competitiveness.
Creating innovations is crucial for increasing productivity, adding value to products, increasing the ability to stand out in the market, implementing highly efficient management systems, or reducing business costs.
However, creating innovation and technology involves significant costs, which are often a barrier for small and medium-sized enterprises, including startups, he said.
Additionally, Mr Phichit said SME D Bank has a platform to help develop various capabilities of SMEs, such as financial management, accounting and product development. The platform, which is called Development Excellence (DX by SME D Bank), is a free service.
The platform has five key features: 1. Business Health Check, a system for assessing business health; 2. E-Learning, which gathers essential knowledge courses to enhance business potential, available for self-learning 24/7; 3. SME D Coach, providing business consulting and advice from professional coaches; 4. SME D Activity, a system for booking continuous knowledge-boosting activities throughout the year; and 5. SME D Market, expanding the market with an e-marketplace and business matching, along with other privileges.
These features help SMEs and startups elevate their business capabilities to become smart SMEs, growing strongly and sustainably in the current and future business world.