TCG expects this year’s loan guarantee amount to reach 45 billion baht, rushing to upgrade the guarantee mechanism to push SMEs.

Mr.Sittikorn Direksunthorn Director and General Manager of the CorporationguaranteeLoanbusinesssmall size (TCG) revealed the operating results for 10 months of 2024 (January-October) TCG The balance is guaranteed.guaranteeLoans of 43,228 million baht help entrepreneurs SMEs they received an additional 76,840 loans, of which 76,840 were micro SMEs) in a proportion of up to 90% guaranteedguaranteeAverage 90,000 baht per person, 10% left as a group SMEs warrantyguaranteeAverage 4.78 million baht per person We created 46,775 million baht of credit in the financial institution system, sustained 398,000 jobs, and generated more than 177,056 million baht in economic benefits under 3 main projects:

1. Project according to government measures, with a credit limit of 25,057 million baht, accounting for 58% of the guaranteed amount, helping 71,570 SMEs to access loans.

2. Free Interest Loan Guarantee Project (Credit Recovery Order, Phase 2) with a credit limit of 9,893 million baht, accounting for 23% of the guarantee amount, helping 1,543 SMEs to access credit.

3. The loan guarantee project, run by TCG, has a credit limit of 8,278 million baht, accounting for 18% of the guarantee amount, helping 4,481 SMEs to access credit.

“The first 10 months of this year TCG already has a loan guarantee of about 43,000 million baht. It is expected that the whole year will have a chance to reach 45,000 million baht … said.

* The total guarantee of PGS 11 exceeds 20 billion, helping small businesses to access credit.

For the main project PGS 11 “TCG Sustainable SMEs” it was considered that it received a good response. From the opening of the project to October 31, 2024, a total commitment of 20,131 million baht, helping 19,039 SMEs to access loans, of which 73% are those who have never used TCG services (new customers), most of them are Micro SMEs, indicating that this project was successful in helping “Vulnerable Groups”: small entrepreneurs, merchants, self-employed people who have difficulty accessing credit. For more access to credit in the system

An important feature comes from project design that meets the needs of each group of entrepreneurs, from micro-SMEs to new entrepreneurs. Including industrial groups under the IGNITE THAILAND strategy and businesses that have changed to a low carbon society, including SMEs in the real estate group. The most important thing about the project is that it reduces the financial burden on SMEs with various benefits. IGNITE ONE has a guaranteed amount of 6,898 million baht.

As for the top 3 certified business types, they are 1. Service sector 28.8% 2. Product manufacturing and other trade 11.4% and 3. Food and beverage 10%. . of the main industries in the country that have benefited from increased demand for goods and services from economic stimulus measures and the expansion of the tourism sector Especially at the end of the year when various industries Focus on expanding investment to support to the high season. A large amount of money is expected to flow into the economy.

“The total commitment in the PGS 11 project until October It has now exceeded 20,000 million baht. .

* Resolve the debts of SMEs which received the highest claim payments in 33 years.

Mr Sitthikorn said that TCG still has an important mission to help resolve the debts of SMEs that have TCG letters of guarantee and have received claims paid by financial institutions. Respond to government policy through the “TCG Ready to Help” measure or the 3-color measure (purple, yellow, green) that started in April 2022. It is a debt restructuring measure that TCG has developed based on his ability to repay debts. Being open and allowing the debtor who received payment to make a claim change to breathing Helping to maintain liquidity during the debt restructuring process with TCG, with the most important being “low installments, easy installments”, “cut the principal before it cuts interest” or pay part of the principal. Charges an interest rate of 0% and has long installments of 7 years “Reduce debt, paid off quickly”.

Since the introduction of debt restructuring measures in 2022 until today, TCG has been successful in implementing measures to help 16,577 loan guarantee debtors whose applications have been have to pay (in 2024, a period of 10 months, the number is 3,131 cases), accounting for Total debt exceeds 10,636 million baht, the highest record in 33 years since the establishment of TCG.

Mr. Sittikorn also said that the clear success is helping debtors in the steps of the green group to get out of debt. and able to move forward with their businesses through “debt relief” measures (blue) for 126 cases, with the movement of debtors demanding “debt relief” through the ever-increasing measures. (measures to relieve debts It started in January 2024 It is a measure to help debtors in the green group who have made good payments in 3 installments in a row and want to get rid of the owe TCG will reduce the principal by 15%).

* Accelerate the renewal of SME loan guarantees.

Mr. Sitthikorn said that TCG has signed a memorandum of understanding (MOU) with Korea Credit Guarantee Fund (KODIT) and Korea Technology Finance Corporation (KOTEC), the credit guarantee institution of the Republic of Korea. The aim is to renew and develop strong credit guarantees in Thailand. Strengthen the loan guarantee mechanism Better risk management and increase the opportunities for financial support for SMEs

Including the credit rating increase, validating the model using data on other options of SMEs entrepreneurs, such as consumption patterns. and payment behavior Let’s calculate the credit score for loan guarantees (Alternative Credit Scoring Model) and apply the model to new business models. Ready for promotion activities as well as helping SMEs using technology and innovation or a start-up organization

“Making such an MOU will help expand the potential. and create ready for TCG credit guarantees by expanding credit guarantee formats. From the current guarantee and payment of claims on a per package basis (Package Guarantee Scheme: PGS) to the direct guarantee and payment of claims on a proportional basis (Direct and Personal Guarantee), where TCG assesses the credit risk of the business operator. directly Since information was checked Individual risk assessment Charging a guarantee fee according to the level of risk (Risk-based Pricing), which allows TCG to expand its scope of assistance to SMEs, covering the needs of SMEs in all measures of credit commitments.” Director and General Manager B. The Department of Labor Protection and Welfare said

* Increase the ability to help SMEs in the region to access capital.

Mr. Sitthikorn said another important role of TCG is to focus on developing the capacity of SMEs in Thailand through the free SME Financial Advisory Centre. To increase the opportunity to access credit in the system From August 2020 – October 31, 2024, financial knowledge was provided to a total of 22,141 SMEs, divided into 6,793 counseling sessions and 15,348 training sessions, which ‘ representing a total loan demand of 17,107 million baht ) at 18.32%.

In addition, it has increased its capacity to help SMEs in each region. debt problem solving and financial knowledge along with providing services through LINE OA: @tcgfirst, increasing convenience for SMEs to come and check their financial health. Ready to make an appointment to receive a consultation and register to participate in various TCG measures for free.

In addition, TCG has always raised the level of organizational transformation in several aspects. To increase the capacity to help SMEs in Thailand and prepare for changes according to government policy. to the institution “National Credit Guarantee Agency” (NaCGA: National Credit Guarantee Agency) is still listening to comments from the relevant departments. Parallel to the drafting of the new law which is expected to take about 1 year

By Kasamaphon Kittisamphan/Saowalak Phonphon