KBank sets aside 1 billion Baht for small SMEs to keep more than 41,000 workers under the “Zero Interest-rate Loan to Retain SME Staff” program

Tuesday 05 May 2020 16:21
After the launch of the “Generous (Business) Owners - Empathetic Creditor” initiative in mid-April, KASIKORNBANK (KBank) continues to provide assistance to SME businesses. Recently, the “Zero Interest-rate Loan to Retain SME Staff” program was introduced to help small businesses with up to 200 employees so that they have funds to keep their workers and maintain business operations. Under this project, KBank has prepared 1 billion Baht in funds for zero-percent loans with a one-year grace period. It is expected that approximately 1,000 SME entrepreneurs and more than 41,000 workers will benefit from the project.

Mr. Banthoon Lamsam, Chairman Emeritus of KBank, said that due to their limited reserves, small-scale businesses have been more severely impacted by the prevailing pandemic. Their liquidity shortage has made it quite difficult for them to access funding sources. KBank has therefore established the “Zero Interest-rate Loan to Retain SME Staff” program to enable these small businesses to retain their employees. The outstanding feature of this project is to help employees earn a living for themselves and their families. Each employee will earn 8,000 Baht a month for three months, for which KBank has set aside 1 billion Baht that will be available to more than 41,000 employees. KBank is willing to lower its income in order to help the members of our society endure the crisis. If those who have give a hand to those who have not, everyone will pull through and no one will be left behind; then Thailand will certainly weather this hardship.

Only small SMEs employing fewer than 200 staff members and using KBank’s services for a number of years are eligible to join the “Zero Interest-rate Loan to Retain SME Staff” program. Such entrepreneurs must have professional integrity and a fighting spirit, and a proven ability to lead their businesses and employees to survive together. Regarding the assistance under this program, KBank will help small SME entrepreneurs partially pay expenses for all of their employees so that they can continue their operations and take care of other expenditures without having to suspend or shut down their businesses. The financial support for small SMEs to retain their employees is free of interest and all types of fees. It has a 10-year term with no collateral requirement. KBank also offers participating SMEs a one-year grace period to ensure that they have sufficient funds for wages. The amount of loan for each company depends on its number of employees. Each of its employees, however, must have income of at least 8,000 Baht per month for three months. KBank will put an examination process in place to ensure that the salary is credited to the account of each employee. A total of 1 billion Baht has been set aside for the financial support program, which should be able to assist over 1,000 companies nationwide to retain more than 41,000 employees.

In mid-April 2020, KBank introduced the “Generous (Business) Owners - Empathetic Creditor” initiative in collaboration with entrepreneurs to help low-income workers remain employed in Phuket. The project has been well-received as it has so far helped entrepreneurs retain more than 2,000 employees, or nearly 70 percent of the 3,000 employees targeted earlier. KBank has helped entrepreneurs reduce interest payments amounting to more than 60 million Baht on their existing loans with KBank, as well.