Siam Commercial Bank aims to expand its lending to small and mediumsized enterprises to Bt300 billion within three years, which would make the bank one of the top three players in the loan market.
The bank is seeking to increase its exposure in the segment after recognising the strong growth potential of smaller SMEs, which make the largest contribution to the economy, Sirichai Sombutsiri, a senior executive vice president, said yesterday.
The bank's outstanding SME loans currently stand at Bt150 billion.
Launching the "Together, We Can" campaign yesterday, SCB aims to grow together with its SME clients, supported by an integrated range of financial services and more than 1,100 employees at around 1,000 branches to cater specifically to these customers.
"We intend to bring SME service to another level," Sirichai said.
SCB has divided SMEs into two main categories: small SMEs with Bt10 millionBt75 million in annu¬al sales revenue, and mediumsized SMEs with Bt75 million-Bt500 million.
Special products and services are also on offer, focusing on business cash management and trade finance.
For example, small enterprises can obtain three times their collateral appraisal value with a fixed interest rate for three years, while medium-sized enterprises in the export-import industry can place collateral valued at zero to 25 per cent of the loan amount.
The fixedrate loans have recently attracted two promising SME exporters: Nuttawut Iamwuttikul, the owner of a stingray export business; and Thongchai Iamwattanasin of Profender, which exports shock absorbers. Both obtained fixedrate loans from the bank.
"I had never been offered this by any other bank. The fixed rate allows me to fix the monthly cost," said Nuttawut.
Besides promoting SMEs' competency, the bank has added the following activities; the SCB Young Entrepreneur Programme, SCB SME Smart, SCBFTI Factory Outlet, SCB Insight Industry Programme, and Bai Po Business Awards by Sasin.
To help SME clients, the bank will also organise seminars to update them on rapid changes in the business and financial environment.
"Even if their SME business is on the rise, operators will still have to pay attention to risks and other factors like the government's economic stimulus package, the political crisis, freetrade agreements and exchange rates," said Sirichai.