The Cabinet has approved SME D Bank to increase the SME Green Productivity loan ceiling to a maximum of 30 million baht, enabling SMEs to access low-interest funding at 3% per annum, driving the transition to green businesses and promoting sustainable growth of Thailand’s economy.
SME D Bank Good news: The Cabinet has approved expanding the SME Green Productivity loan limit up to 30 million baht and broadened the loan purpose to include converting vehicles to clean energy. This supports SMEs in accessing low-interest loans at just 3% per annum, fixed for the first three years, enhancing their capacity to transition to green businesses that benefit both their operations and the environment, thereby strengthening sustainable growth and helping pull Thailand’s economy out of prolonged low growth.
Mr. Phichit Mitrawong, Managing Director of the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) Mr. Phichit stated that Thailand's economy has experienced prolonged low growth and urgently needs structural reform by adopting technology, innovation, and clean energy to enhance business potential, especially for SMEs, which are the economic lifeblood. When SMEs improve their capabilities, it positively impacts the overall sustainable growth of the Thai economy. However, upgrading technology and innovation toward green businesses requires significant investment. Therefore, the Cabinet meeting on 6 Jan 2026 approved adjusting the criteria for the SME Green Productivity loan—a government policy loan (Public Service Account: PSA) through SME D Bank—by raising the maximum loan per entity from 10 million baht to 30 million baht to support SMEs transitioning to green businesses with sufficient investment capital and to resolve limitations that forced them to seek other funding sources. Additionally, the loan purpose now covers SMEs seeking to convert their vehicles to clean energy, which will improve business efficiency, reduce costs, and lower greenhouse gas emissions.
Mr. Phichit He added that the SME Green Productivity loan has a total fund of 15 billion baht, with about 10 billion baht remaining. It aims to help Thai SMEs invest or co-invest for business productivity upgrades toward green industries, promote clean energy use, reduce business costs, and comply with new international trade regulations while operating environmentally friendly businesses that benefit both business and the planet, fostering sustainable growth.
Key features include a low interest rate of only 3% per year, fixed for the first three years, with repayment terms up to 10 years and a grace period of up to 12 months on principal payments. Furthermore, raising the loan ceiling to 30 million baht will provide SMEs with sufficient capital at low financing costs and long repayment periods, supporting a smooth transition to green industries.
The SME Green Productivity loan is expected to enable approximately 1,700 SMEs to access funding, generating over 68.7 billion baht in economic liquidity and preserving no fewer than 27,680 jobs. Importantly, it will help SMEs increase productivity, competitiveness, and adapt to new international trade rules while being environmentally friendly, using clean energy, reducing carbon emissions, creating jobs, distributing income, building a strong foundation, and driving Thailand’s economy out of prolonged low growth toward sustainable future growth.
Entrepreneurs can apply for the SME Green Productivity loan starting now until 30 December 2026 or until the loan funds are exhausted.
Read the news " Government Policy " for more details.