The SME Development Bank (SME Bank) has cut lending rates in a bid to help the country's newest bank meet its lending target of 30 billion baht for the year.
The rate cut, which will take effect from 1 August, will cut loan rates from one-half to one full percentage point, with minimum lending rates falling from 7% to 6.5% and rates charged on factoring services cut from 7.5% to 6.5%.
Bank officials said that the cuts would bring the bank's rates in line with declining rates in the overall market. Rates for the state-owned SME Bank however will still be higher than prime rates charged by the top commercial banks, which currently stand at around 5.75% and as low as 5.5% for Kasikornbank.
In the first six months of the year, the SME Bank extended nine billion baht in new loans and three billion in factoring credits. Total assets at the bank stand at less than 20 billion baht.
