Finance Ministry launches loan guarantee for pickup trucks

The Finance Ministry on Friday introduced a measure to guarantee pickup truck hire-purchase loans, with a credit limit of 5 billion baht, aiming to boost sales of over 6,250 trucks.

Deputy Finance Minister Paopoom Rojanasakul said the initiative, called “Finance Ministry will guarantee your truck,” under the Thai Credit Guarantee Corporation (TCG), seeks to support the struggling automobile industry.

Declining sales stem from financial institutions’ strict lending policies, particularly for truck hire purchases, due to SME debt risks and low second-hand car prices, he said.To address this, TCG will guarantee loans and cover the gap between outstanding debt and auction prices. The government will fully cover the guarantee fee for the first three years, then reduce support to 1.5% per year from the fourth to the seventh year.

Applications open from April 1 to December 30, aligning with the Bangkok International Motor Show 2025 (March 23-April 3). The first-phase credit limit is 5 billion baht, with a maximum guarantee of 1.5 million baht per person.

This measure is expected to encourage leasing firms to offer more loans, facilitating new truck purchases for entrepreneurs. Financial institutions are projected to issue over 5 billion baht in new loans, generating economic benefits of at least 21 billion baht.

The initiative will support the automobile sector, supply chains and related jobs, as Thailand remains a key regional production hub, Paopoom said. He added that pickup trucks play a vital role in many occupations, especially in agriculture, construction, freight and trade.

(2025/03/21-00:00)