“SME Go Green” Loan from SCB lets SMEs go lean and green, while boosting sustainability and a positive economy

Stocks and Financial Services Press Releases Thursday July 23, 2020 10:13
Bangkok--23 Jul--Siam Commercial Bank

Following its solid commitment to drive sustainability through SME support amid the current tough economic situation, Siam Commercial Bank (SCB) has joined forces with the Department of Industrial Works (DIW), the Department of Alternative Energy Development and Efficiency (DEDE), the Thailand Environment Institute (TEI), the Board of Investment Office (BOI) and the Metropolitan Electricity Authority (MEA) to promote “Lean & Green” SMEs. The launch of this new financing will help support SMEs in better managing energy costs and efficiency, while offering planet-friendly solutions. SCB’s “SME Go Green” loans cover both long-term and working capital loans for clean energy, pollution management, and logistical enhancement, and will help reduce energy consumption for a better environment. This financing scheme comes with special offers from the collaborating government agencies, such as a tax shield for corporate income tax of up to 8 years, listing as a Green Manufacturer for government procurement, and international green product certifications for import-export privileges. With a total credit line of over two billion baht, SME Go Green loans will be ready to support green SMEs by the end of this year.

In revealing the new loan product, SCB Senior Executive Vice President, Chief SME Banking Officer Mrs. Pikun Srimahunt said that amid the current economic situation, SCB has realized a gap in business opportunities for SMEs. “We are ready to support Thai SMEs, enabling them to operate their machinery and equipment with optimal efficiency and minimal energy consumption. The move will not only help lower their energy costs, it could effectively reduce waste and help sustain entrepreneurs’ business operations amid a difficult economic situation. SCB operates its business on the basis of good governance, while seriously taking into account impacts to society and the environment in line with its mission of working for sustainability. The SME Banking Office is committed to strengthening the financial capabilities of Thai SMEs adequate for investment to increase the efficiency of energy and natural resource consumption in an environmental-friendly manner with tangible and sustainable outcomes. The Bank has therefore joined forces with the Department of Industrial Works (DIW), the Department of Alternative Energy Development and Efficiency (DEDE), the Thailand Environment Institute (TEI), the Board of Investment Office (BOI) and the Metropolitan Electricity Authority (MEA) to launch the SME Go Green financing scheme to raise the efficiency of energy consumption by businesses. The move also aims to encourage the business sector to take part in efforts to reverse global warming, an issue of worldwide concern. The financing scheme will offer long-term loans for energy conservation of up to 150 percent of collateral value, installment periods of up to 7 years, and grace periods for principal payment in the first year. In conjunction with long-term financing, it also offers working capital loans for the hire purchase of clean energy vehicles for business operations and liquidity boosting. SME Go Green loans will entitle borrowers to special interest rates, lower than regular loans, thus helping businesses lower their operating expenses while propelling them toward transitioning to green industries.

Apart from the special financial benefits listed above, companies joining the SME Go Green scheme will enjoy other privileges offered by government agencies, such as a eight-year corporate income tax shield for those using solar energy, exemption from import customs for the purchase of machinery, and three-year corporate income tax waivers worth 50% of the investment for energy savings. Consultation and inspection services by experts for equipment modification for energy savings, or using alternative energies will be available free of charge for entrepreneurs in any area and any size of business to ensure cost reduction. In addition, SMEs will be eligible to be included on the Green Manufacturers list for government procurement, while attaining international green product certification to enjoy greater import-export privileges.

By operating its business on the basis of caring for society and the environment in every aspect, SCB has been listed on the prestigious Dow Jones Sustainability Indices (DJSI), in both the World Index and Emerging Markets Indexes. It is one the top ten banks demonstrating strong performance in line with world-class sustainable practices in the banking segment for the second year in a row. The Bank has made two billion-baht SME Go Green credit facilities available in 2020, a 100 percent increase from the one billion baht approved the previous year. The Bank is moving forward to expand its green loan portfolio with a firm commitment to playing a part in driving a green economy and improving the environment for Thailand’s sustainable growth.

SMEs interested in applying for SCB’s SME Go Green, both companies and individuals, can find more details about requirements at https://scbsme.scb.co.th/products-detail/sme-green-financing, or they can contact their Relationship Manager, or call the SCB Business Call Center at tel. 0 2722 2222 from 23 July - 31 December 2020

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