Siam Commercial Bank (SCB) has long been aware of the importance of energy and environmental conservation as evidenced by its sustainability policy, with a particular concern toward the critical role played by businesses in global climate change, including SMEs. Following its policy of creating and offering sustainable financial solutions for a sustainable world and the bank's plan to support SMEs in transforming their business processes to save energy, costs, and the environment to meet sustainable business requirements, SCB is introducing green business loans to encourage SMEs to effectively shift their business ecosystems to renewable energy and energy-saving machinery and equipment.
Pikun Srimahunt, Senior Executive Vice President Chief SME Banking Officer with Siam Commercial Bank said, "Further to SCB's continuous determination in driving its sustainability strategy through designing sustainable financial solutions, we are promoting an opportunity for SMEs doing their businesses under an environmental, social, and corporate governance (ESG) framework to access funds for sustainable business development. This year we are continuing our effort with a "loans for green businesses and business sustainability" campaign for business operators across industries that are looking for renewable energy solutions to save on production, logistics, and business process costs so that they can effectively become more eco-friendly, solve environmental issues in the long run, and save as much as 20-30% per year in costs. For 2021-2023, SCB SME has earmarked some 6 billion baht for its "loans for green businesses and business sustainability" campaign to support energy saving and sustainability projects for SMEs, such as the installation of industrial power generators using renewable energy, shifting to electric vehicles (EVs) and the installation of EV charging stations for business operations, the production or installation of equipment to control greenhouse gas emissions, reducing air pollution emissions, waste-to-energy conversion systems, waste recycling, installation of industrial wastewater management and treatment equipment, and businesses with women holding shares over 50%, etc."
SCB SME loans for green businesses include the following:
- Loans for business sustainability: These loans provide for environmental care and development and eco-friendly business management. For example, renewable energy, the improvement of logistics efficiency through green energy, and waste management and treatment. SCB SME loans under this category include long-term loans offering credit lines of up to 100% of the project value for periods as long as 7 years (with a grace period of principal amounts of up to 12 months), working capital facilities: O/D, P/N, and Trade Finance with unsecured credit lines of up to 50 million baht, and fleet hire-purchase loans for eco-friendly vehicles offering credit lines of up to 30 million baht for installment period of up to 60 months, whereby vehicles can be pledged as collateral without other additional collateral.
- Loans for productivity boosting: These are loans for investment in energy-saving machinery and technology to improve productivity and manage costs and investment in data analytic technology and platforms to improve production and manage inventory. Long-term loans under this category offer credit lines of up to 100% of investment value and up to 100 million baht for a period as long as 5 years (with a grace period of principal amounts of up to 12 months).
SCB is also offering a special campaign of 0% interest for the first 3 months for SMEs applying for solar panel installation loans for their businesses during July - September 2022 and drawing down by October 31, 2022, and the first 100 companies receiving a minimum 10 million baht loan for solar panel installation will receive Central gift vouchers worth 2,000 baht (Central gift vouchers worth 2,000 baht in total/company).
SMEs interested in SCB SME loans for green businesses can apply for a loan at
https://www.scb.co.th/th/sme-banking/total-solutions/campaign-solution/sme-go-green.html For more information and inquiries about conditions on loan applications, please contact an SCB relationship manager, or call the SCB Business Call Center at 0 2722 2222.