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14 Jul 2025

Financial Institutions

ESG loans in Thailand: A new funding option for SMEs and retail businesses (Current Issue No.3592 Full Ed.)

คะแนนเฉลี่ย
  • Environment, Social, and Governance (ESG) loans can help SMEs and retail businesses secure lower interest rates compared to conventional loans. Additionally, lenders may provide SMEs with business strategies and knowledge, enabling them to reduce costs, improve operational efficiency, and enhance their competitiveness in an increasingly sustainability-driven market.
  • Over the past four years, Thai commercial banks have accelerated sustainable lending. As a result, the proportion of ESG outstanding loans to each bank’s total loan portfolios grew sharply from an average of 1.6 percent in 2021 to 3.9 percent in 2024.  Most of this was driven by their efforts to meet sustainable finance targets.
  • KResearch expects Thai commercial banks to continue to shift towards greener portfolios in the long term, driven by the trend of expanding sustainable finance lending targets after nearing completion of initial objectives.

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Financial Institutions