Thailand News

Bank of Thailand sets out a timetable for SME credit reforms

October 8, 2026Event date

For smaller businesses, the difficulty is often getting a bank to assess the business at all. Limited financial records, irregular receipts and the lender's cost of checking an application can work against an otherwise viable borrower. Central bank governor Vitai Ratanakorn used a Bangkok economic forum to explain how Thailand intends to address those barriers.

Sixteen quarters of shrinking SME credit

SME lending had contracted for 16 consecutive quarters, according to figures discussed at the Thailand Economic Outlook 2027 event on 8 October. The central bank sees the problem as structural: cutting its policy rate does little to resolve a lender's uncertainty about a firm's cash flow or the risk of a loan turning bad.

The reform therefore puts more emphasis on sharing credit risk and making reliable borrower information accessible. Its success will ultimately be measured by additional financing reaching businesses, not simply by the number of applications submitted through a new website.

For practical context, see Thailand economy and finance. This development also connects with Bank of Thailand: Economic Activity Slowed in Q2 2026.

December's loan portal is only the first stage

The proposed SME Credit Portal is expected to start operating in December 2026. It is intended to bring loan seekers and participating lenders together, allowing businesses to compare financing or refinancing offers. The December timetable had already been reported in September; the governor's October presentation placed it alongside the next phases of the wider lending programme.

A more permanent credit-guarantee arrangement is planned for the first quarter of 2027. By sharing a portion of lenders' losses, the central bank hopes to make financing viable smaller firms less risky for banks. A separate system for exchanging alternative information — including utility payments and transaction histories — is expected to develop later in 2027. That could help lenders assess entrepreneurs without conventional salary documents.

These remain planned changes. Whether a particular bank participates, what information it may use and how a borrower qualifies will depend on the arrangements in place when each service opens.

The 100-billion-baht figure is a target, not a loan fund

The headline ambition is to support approximately 100 billion baht in new SME loans annually. It is not an announcement that this amount has been disbursed, nor does it establish a right to borrow for every small company operating in Thailand.

There is also an important distinction from the existing SMEs Credit Boost programme, launched on 15 January 2026. That initiative was initially expected to support about 100 billion baht in fresh loans over one to two years, under defined eligibility and loan-purpose rules. The longer-term annual ambition announced as part of the broader reforms should not be added to that earlier estimate as though both were separate pools of money ready for distribution.

Business owners can treat the October announcement as a guide to where credit access may improve. Actual borrowing costs, collateral requirements and eligibility — including those of companies with foreign owners — will still have to be assessed under each lender's rules. A matching portal may broaden the options without ensuring approval.

Sources

Bank of Thailand — governor's address at Thailand Economic Outlook 2027, 8 October 2026.
The Nation — “BOT Pledges Credit Overhaul to Open Bank Loans to Thai SMEs,” 8 October 2026.
The Nation — “BOT and Trade Chamber plan December Credit Portal after 16 quarters of SME loan decline,” 18 September 2026.
Bank of Thailand, Thailand's Ministry of Finance and banking associations — joint announcement on SMEs Credit Boost, 26 December 2025.