Government Savings Bank Plans to Distribute 300 Billion Baht in New Loans in 2025 to Support Grassroots Communities
Government Savings Bank plans to distribute 270-320 billion baht in new loans throughout 2025, targeting grassroots microenterprises and SMEs with low interest rates to support communities amid economic challenges.
Government Savings Bank Plans to Distribute 300 Billion Baht in New Loans in 2025 to Support Grassroots Communities. Songphol Cheevapaññarojanam, Director of the Government Savings Bank, announced that in 2025 the bank plans to distribute new credit loans valued at approximately 270-320 billion baht to assist grassroots entrepreneurs and SMEs. The loans will be divided into three groups:
1. Grassroots microenterprises (over one million borrowers) requiring no collateral, with individual loan amounts between 100,000-200,000 baht depending on customer needs and repayment capacity. The bank targets new disbursements of approximately 70,000-100,000 million baht, comprising various credit types such as revolving credit to improve liquidity and occupational loans tailored to customer needs. Interest rates will be kept low to ease borrower burden.
2. Small and medium-sized entrepreneurs (SMEs) without collateral, with a target of 120,000 million baht in new credit—40% higher than the previous year. This segment receives priority attention as these customers have been significantly impacted by the economic crisis.
3. Low-interest loans (soft loans) valued at 100,000 million baht to support liquidity, create new momentum, facilitate transition and development, and provide loans for solar panel installation and all types of electric vehicles approved by the Cabinet. This program began in late 2024, with 9 billion baht already disbursed; the remaining 90,000 million baht is expected to be distributed more quickly this year. The bank is negotiating memorandums of understanding with commercial banks and non-bank financial institutions to facilitate soft loan disbursements.
Cheevapaññarojanam stated that the Government Savings Bank aims to be a "bank for society, for all lives" serving people at every stage of life. He noted that the Thai economy faces challenges in 2025 from Middle Eastern conflicts and energy price crises, making it essential for the bank to support struggling grassroots communities and SMEs. The bank will offer interest rates below those of commercial banks while providing financial literacy education to help customers understand proper money management. The bank commits to leaving no one behind.
"There are many challenges ahead in this year that we must prepare for. This crisis is an opportunity because our geographic position allows us to continue earning and exporting. We must work together and move forward. The Government Savings Bank is ready to be part of ensuring everyone survives. We will be a bank for society, for all lives, and for all ages," Cheevapaññarojanam said.
Additionally, the bank has implemented a policy to reduce interest rates for borrowers with good repayment discipline. The policy was piloted with home loan applicants—for example, when borrowers complete three years of fixed-rate interest periods and face higher floating rates, the bank will negotiate with borrowers to reduce rates to 3-4% without waiting for the full three-year term to expire. This will be expanded to business loans and microenterprises to encourage and reward those with good payment discipline.
Cheevapaññarojanam announced plans to support customer savings with higher returns, including the planned issuance of Government Savings Bank lottery bonds with total prize money of 113 million baht. Previously, the grand prize was valued at 70 million baht alone, but the structure will be modified.