Thai SME loans shrink 16 quarters as credit access gap widens

About 1 in 5 SMEs still need funding from loan sharks.

New loans to Thailand’s small and medium enterprises (SMEs) have shrunk for 16 quarters straight in a row, according to data from the Bank of Thailand (BOT).

Only 30% of SMEs have received credit from financial institutions, whilst 40% of SMEs borrow from both financial institutions and loan sharks, the central bank said. About 20% to 23% of SMEs need funding from loan sharks.

“Therefore, we see the problem and concern regarding the deterioration in asset quality in the SME segment due to the liquidity problem,” said Thanawat Thangchadakorn, analyst for UOBKH, in a sector report published on 22 September 2026.

Thangchadakorn expects the BOT and other government organisations to tackle and solve the liquidity problem to prevent the deterioration of SME loans.

The governor of BOT had expressed concerns regarding debt of the SME segment, according to UOBKH. Non-performing loans (NPLs) rose by THB104b, of which new THB52b were new NPLs and THB52b are re-entering NPLs.

The BOT has kicked off measurement programmes, including the THB20b SME Credit Boost programme, which compensates banks when a loan becomes an NPL by paying 15% to 30% with a protection period of seven years.