On September 16, Veerachai Amorntakolsuwech, First Senior Executive Vice President and Acting President of Government Savings Bank (GSB), revealed that the outlook for the Thai economy in the second half of 2025 continues to face pressure from both domestic and external factors, particularly the slowdown in exports due to trade tariff policies and declining tourism.
At the same time, there are structural issues, such as rising household and public debt, as well as limited access to formal sources of credit, all of which impact SMEs, grassroots communities, and small entrepreneurs.
Veerachai stated that GSB stands ready to function as a financial engine to support and assist SMEs in recovering and overcoming these challenging times, acting as a “funding source for business enhancement” to improve liquidity, inject capital, and promote sustainable business recovery.
Most recently, the bank is preparing to launch an additional low-interest loan or soft loan program with a total credit line of THB 100 billion. GSB will charge participating financial institutions an interest rate of only 0.01% per annum, allowing them to re-lend to SMEs at a rate not exceeding 3.50% per annum in the first two years. The aim is to boost liquidity and enhance the potential of Thai businesses to access ongoing sources of formal funding, with implementation expected soon.
Previously, GSB has implemented several key lending programs, such as the GSB D-Home real estate stimulus loan program—building homes for Thais—with a credit line of THB 10 billion and a fixed interest rate of 3.50% per annum for the first two years (THB 6 billion already approved), and the GSB Boost Up Plus soft loan program, with a THB 100 billion credit line and a fixed interest rate of 2.99% per annum for the first two years (THB 98.7 billion already approved).
There are also new initiatives, such as soft loans to support entrepreneurs in the three southern border provinces (maximum loan of THB 20 million per borrower), and the third phase of the liquidity enhancement loan for the fisheries sector with a THB 2 billion project credit line and a maximum loan of THB 10 million per borrower, aiming to alleviate difficulties for fisheries operators and support the government’s sustainable fisheries resource management policy.
GSB is also advancing grassroots economic development for both the low-income population and those previously excluded from the formal lending system.
As of June 30, 2025, the bank has provided assistance through three key missions: enabling access to institutional funding for over 680,000 people via social loan innovations; debt restructuring to help more than 800,000 borrowers maintain a good credit record; and local capacity development by creating jobs and promoting savings, benefiting over 250,000 individuals.
Additionally, the bank continues to expand its Social Impact initiatives to meet the goal of assisting at least 2 million vulnerable people per year through four major missions, together with integrating technology and AI innovation to enhance operations and financial services. Key highlights include
- “AI Optimized Loan Processing and Underwriting” to boost approval efficiency, speed, and accuracy while reducing approval time and operational costs.
- “AI Chatbot for Branch” to help branch staff access information more conveniently and accurately.
These will be implemented in Q4 of this year to enhance comprehensive financial services and sustainably drive grassroots economic growth.
