Kasikorn Research says SME loans contracted 5.6% in Q2 2026, the 15th straight quarterly decline, and full-year 2026 may fall 4.5-5%. Problem-debt ratio (Stage 2 plus Stage 3) is 25.59%, and SME profits do not cover interest costs on average. Banks still weigh repayment ability and business trends, not just collateral. BOT plans to propose upgrading loan guarantees with the Finance Ministry, working alongside BSY's SME Credit Boost. For your business: expect stricter approvals, so prepare cash-flow and repayment evidence early and ask your bank about SME Credit Boost products. Labour and raw-material costs are rising even as interest rates fall.