Kasikornbank (KBANK), in co-operation with the Small Industry Credit Guarantee Corporation (SICGC), plans to offer guarantees for small businesses under a new risk participation programme.
Under the programme, the same as one agreed on last week by Siam City Bank, the SICGC will guarantee loans issued by KBANK, even if collateral is inadequate, for an extra fee of 1.75% of the loan amount.
The SICGC will approve the guarantees within five days of the bank approving the loans.
Pipit Aneaknithi, a KBANK first vice-president, said the bank already had a similar co-operation agreement with the SICGC since 2000, under which the agency had guaranteed 1,870 loans worth a total of 5.6bn baht to date.
The bank expects to have SICGC guarantees for small business loans worth 1.7bn baht this year, compared with 1.5bn baht last year.
