Ministry to propose extending soft loan programme for Deep South to 2027

The goal is to ensure that entrepreneurs in these areas can continue running their businesses with sufficient liquidity.

The Finance Ministry is preparing to propose to the Cabinet an extension of the soft loan programme for the three southern border provinces until the end of 2027, along with an increase in the loan fund by 15 billion baht to support local businesses affected by ongoing unrest in the region.

The current phase of the programme will expire at the end of June.

Deputy Finance Minister Paopoom Rojanasakul revealed on Wednesday that the extension is a response to the persistent instability in Yala, Pattani, and Narathiwat provinces, which has disrupted business operations and deterred investment. The goal is to ensure that entrepreneurs in these areas can continue running their businesses with sufficient liquidity.

Under the revised proposal, the Government Savings Bank (GSB) will provide a total of 15 billion baht in soft loan funding to participating financial institutions, including both commercial banks and specialized financial institutions. These funds will be offered at a preferential interest rate of just 0.01% per year.

Participating banks will then re-lend the funds to eligible entrepreneurs in the affected areas, including not only the three southern border provinces but also four districts in Songkhla Province: Thepha, Chana, Na Thawi, and Saba Yoi.Loan eligibility includes both existing borrowers from previous phases of the programme and new applicants seeking working capital to maintain business operations or funding to expand their enterprises. The maximum loan amount per borrower is set at 20 million baht.

Paopoom emphasized the government’s continued concern over the unrest and its commitment to ensuring that local businesses have access to the financial support needed to recover and sustain operations.

“The soft loan programme is intended to reduce financial burdens, especially interest costs, while boosting business confidence and encouraging further investment in the region,” he said. “In the long run, this initiative is expected to contribute to the financial and economic development of the southern border provinces.”

(2025/05/15-00:00)