Thai SME loans have now contracted for 15 consecutive quarters since the fourth quarter of 2022, and Kasikorn Research Center expects a decline of about 4.5% to 5% this year, deeper than its earlier estimate. Dr. Kanchana Chokpaisarnsilp, head of research at Kasikorn Research Center, said SME loans fell 5.6% in the second quarter of 2026, and a 5% decline would mark a fifth straight year of contraction. Stage 2 and Stage 3 SME debt stands at 25.59%, up from 25.55% a year earlier and 23.83% the year before that. Sitthikorn Direksunthorn, director and general manager of the Thai Credit Guarantee Corporation, said non-performing loans combined with debt overdue by no more than 90 days remain steady at 28%, up from about 18% a decade ago. Bank of Thailand Governor Vitai Ratanakorn said the SME Credit Boost program, run with help from the Thai Credit Guarantee Corporation, had approved 65.319 billion baht in loans as of August 28 against a target of 80 billion baht. The Bank of Thailand plans to propose to Dr. Ekniti Nitithanprapas, deputy prime minister and finance minister, that SME credit guarantees be expanded further, judging that lending of about 100 billion baht a year would be a satisfactory level.
Bank of Thailand plans to propose expanding SME credit guarantees, which would increase the Thai Credit Guarantee Corporation's guarantee business.
