Small firms face high finance costsThe Bank of Thailand has raised concerns about rising financial costs for micro-SMEs (small and medium-sized enterprises) as they increasingly rely on nano-finance loans amid tighter access to bank credit. "For micro- and nano-finance loans, micro-SMEs are typically charged interest rates close to the regulatory ceiling of 28-33% per year," noted the minutes. Although bank interest rates have declined in line with earlier policy rate cuts, funding costs for micro-SMEs remain elevated. Apart from increased borrowing through high-interest loans, the credit risk of this borrower segment remains relatively high, the minutes noted. Interest rates across the banking sector have gradually declined over the past 18 months, in line with the regulator's monetary easing cycle.

Source: Bangkok Post March 15, 2026 23:42 UTC