You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

December 7, 2020

Bank of Thailand Introduces Digital Personal Loans

Subscribe to Updates
Informed Counsel

With technological advancements, business operators are able to access more varieties of data than ever before, and are able to use that data to assess the terms on which loans are provided. This means that they can provide services to consumers more efficiently and with lower operating costs. More importantly, however, it allows them to provide financial services to a broader range of consumers who would otherwise not be able to access vital funds.

To facilitate this, on September 15, 2020, the Bank of Thailand (BOT) introduced a new type of personal loan—the digital personal loan—under BOT Circular Re: Rules, Procedures and Conditions for the Undertaking of Digital Personal Loan Business. Sometimes known as “quick loans” or “easy loans” in other jurisdictions, this new type of loan instrument is intended to promote Under the circular, a digital personal loan is defined as a personal loan for which business operators utilize digital technology and alternative data (e.g., utility and mobile phone bill payment records) to assess the borrower’s ability and willingness to repay. The digital personal loans do not include loans for which car registration is used as collateral.

The key requirements for undertaking a digital personal loan business are as follows:

  1. Business operators are expected to use technology and alternative data to determine the customer’s risk profile, based on their ability or willingness to repay. The alternative data that is used must be from a trusted source and use a sensible hypothesis in assessing the customer’s credit profile. Such business operators may comply with the BOT’s information-based lending guidelines.
  2. Business operators must use electronic channels for both the provision and repayment of the loans. This may include disbursing and repaying by bank transfer, direct debit, or e-money to create a digital footprint in the financial sector for the customers.
  3. Business operators must disclose relevant information to customers, including interest rates, fines, service fees, operating fees, outstanding loan tables, and any other fees relating to the Digital Personal Loan. This information must also be easily accessible for customers through electronic means (for example, by being hosted and easily accessible on the loan providers website).
  4. The maximum loan amount is THB 20,000 with a tenure of not more than six months.
  5. Business operators are prohibited from charging additional interest rates, fines, service fees, operating fees, or any other fees to customers for early repayment of a loan.
  6. Business operators are required to have IT security risk management measures in place. This includes measures to protect data from unlawful collection, processing, use, and destruction. Business operators also have an obligation to business continuity management, which they must satisfy by having a business continuity plan and an IT Disaster Recovery Plan. If the business operator will outsource their IT systems or connect their IT systems to third party services in a way that will involve the transfer of sensitive data (e.g. by using a cloud computing service), the third party must also have risk management and cybersecurity processes in place to the same standards.

Personal loan license holders that wish to offer digital personal loans must submit an application and supporting documents, including information on their minimum viable product, for BOT consideration at least 30 business days prior to the date on which they plan to begin offering digital personal loans. However, this application requirement is waived if the provision of digital personal loans only uses traditional methods of assessing customers’ ability or willingness to repay their loans (such as the National Credit Bureau).

Business operators who would like to issue digital personal loans but do not currently have a personal loan license must first apply for one from the BOT in accordance with the requirements of BOT Notification SorNorSor. 12/2563 Re: Regulations, Procedures and Conditions for Undertaking Business of Personal Loan under Supervision. In practice, these business operators may apply for a personal loan license and simultaneously apply for BOT approval of their plan to issue digital personal loans.

While digital personal loans look set to become a major offering in Thai consumer banking, they are also of particular interest to non-traditional loan operators—especially e-money operators, large-scale casual employers (such as ride-share operators and delivery services), and even retailers, as has been the case with similar “quick loan” systems in other jurisdictions.

Download Full Article
Related Professionals

Industries

Technology

Practices

Banking and Finance

Location

RELATED INSIGHTS​ 

February 10, 2026
Data center and cloud investments are forming a major focus of private-sector investment in Thailand, with tech giants like Amazon, Google, Microsoft, and TikTok, as well as numerous telecom and data center companies, committing significant outlays to data center and cloud development. The country’s Board of Investment (BOI) approved projects worth THB 1.87 trillion in 2025, and THB 746 billion of this was from planned data center investments—by far the largest amount from any single industry. Thailand’s swift rise as a regional data center hub is fueled by surging demand for cloud, AI, and digital services, as well as large-scale investments from global tech firms. The country’s strategic location, competitive power costs, robust fiber infrastructure, expanding IT talent, and supportive government policies—including BOI incentives and streamlined approvals—have made it an attractive destination for scalable and sustainable digital infrastructure investments. The BOI’s proactive approach in updating promoted categories and providing both tax and non-tax incentives further ensures Thailand’s continued growth in this sector. 2025 BOI Changes for Data Centers In the middle of 2025, the BOI responded to the remarkable trend by updating investment‑promotion categories across various sectors (e.g., machinery and electrical equipment, public utilities, digital and innovative industries) to accommodate growing investment in data‑center projects. Before the change, which was detailed in a notification that has applied to investment promotion applications submitted from July 1, 2025, onward, data‑center projects under BOI promotion were granted a single A1 incentive (an eight‑year corporate income‑tax exemption) and subject to one uniform set of conditions. The July 2025 notification restructured promotion for data centers into two categories based on power‑usage efficiency: high‑efficiency data centers and other data centers. Under these rules, qualified high‑efficiency data centers are eligible for an eight‑year corporate income tax (CIT) exemption, while for other data centers this exemption is
Read More
February 4, 2026
On November 18, 2025, Vietnam’s Ministry of Finance released for public consultation a draft decree on administrative sanctions in the field of crypto assets and crypto asset markets (the “Draft Decree”), intended to implement Resolution No. 05/2025/NQ-CP dated September 9, 2025, on the pilot crypto asset market in Vietnam (“Resolution 05”). While Resolution 05 sets out who may participate and under what conditions, the Draft Decree addresses a more practical question for market participants, i.e., what happens if those conditions are not met. In doing so, the Draft Decree offers important insight into how Vietnamese regulators intend to supervise, discipline, and ultimately shape the crypto market during the pilot phase. Regulatory Scope and Overall Sanctions Architecture The Draft Decree applies to both domestic and foreign organizations and individuals engaging in crypto-related activities in Vietnam’s market. Covered entities include: (i) crypto asset issuers; (ii) crypto asset service providers, including trading platforms and market operators; (iii) Vietnamese and foreign investors participating in the pilot market; and (iv) other organizations involved in the offering, issuance, or provision of crypto-related services in Vietnam. The breadth of this scope is deliberate. It appears to reflect a regulatory view that cross-border structures, offshore platforms, and indirect participation may not necessarily insulate market actors from compliance obligations once they operate within the pilot framework. For the crypto industry, this may mark a shift from regulatory ambiguity toward a more explicit articulation of jurisdictional reach. At first glance, the Draft Decree’s monetary penalties appear restrained. The maximum fine per administrative violation is capped at VND 200 million (approx. USD 7,700) for organizations and VND 100 million (approx. USD 3,800) for individuals. However, focusing solely on fine levels risks missing the point. The Draft Decree also places great regulatory weight on supplementary sanctions and corrective measures, including: (i)
Read More
January 30, 2026
Thailand’s Data Privacy Day 2026, hosted by the Office of the Personal Data Protection Committee (PDPC), underscored the country’s commitment to strengthening personal data protection, advancing regulatory maturity, and preparing organizations for the next phase of PDPA enforcement. The event marked a clear shift from policy-level compliance toward “Privacy in Action,” signaling that operational readiness and real-world implementation are now priorities. The Office of the PDPC also emphasized that data protection is now a national economic enabler that supports digital trust, competitiveness, and sustainable growth, not just a compliance obligation. The following insights summarize the key takeaways from the Data Privacy Day 2026 event. PDPA in Real Life: What Happens to Your Data Today The Office of the PDPC provided concrete data on enforcement trends and real-world compliance issues facing organizations across Thailand. Complaints and trends. The Office of the PDPC’s Personal Data Protection Act (PDPA) Center recorded 2,672 PDPA-related complaints as of January 2026, with the highest volumes involving failure to comply with the data minimization principle, collection without lawful basis, and use and disclosure without lawful basis. Administrative penalties. Several administrative penalties have been imposed on data controllers and data processors across various sectors, including government, healthcare, retail, SMEs and e-commerce, ranging from tens of thousands to several million baht. Most violations stemmed from weak security measures, failure to notify data breaches within the required timeline, absence of a data protection officer (DPO) when required, and noncompliance with governance requirements such as the Record of Processing Activities (ROPA) and data processing agreements with data processors. Case studies. The Office of the PDPC highlighted specific examples of violations: Hospitals misused personal data for purposes beyond their intended scope (e.g., using personal data collected for providing medical services to send birthday cards) Vendors compromised systems due to inadequate password
Read More
January 29, 2026
Following the recent enactment of a comprehensive legal framework addressing sexual harassment, Thailand has launched a fast-track judicial process enabling victims of online sexual harassment to obtain court orders suspending and removing obscene content from the internet. On January 26, 2026, the Office of the Judiciary introduced the “Take It Down” procedure through the Court Integral Online Service (CIOS) platform, providing victims with their first direct, expedited pathway to halt the spread of online content that violates the new legal provisions against sexual harassment. This new remedy stems from section 284/4 of the Penal Code, introduced through the Act Amending the Penal Code (No. 30) B.E. 2568, which took effect on December 30, 2025. Under section 284/4, an injured person or a competent official may petition the court to suspend dissemination of violating data and remove the data from computer systems within a court-specified period. The court may also direct system controllers, service providers, or competent authorities to carry out the order and report back within 15 days. Filing through the CIOS Platform The CIOS platform serves as the primary electronic channel for these petitions. Key features include: Individuals can file online without appearing in person and may submit petitions at any time the system is available. Users must complete digital identity verification via the ThaID application to access the CIOS. Petitions under section 284/4 are limited to requests to suspend or remove violating content. Claims for monetary damages must be pursued separately, including via separate proceedings or prefiling mediation. Streamlined Review Process The submission workflow is end-to-end electronic, and the system provides step-by-step guidance. After submission, court staff review the petition before presenting it to a judge for consideration. The court may conduct an online inquiry to obtain additional information, and in-person attendance is required only if deemed
Read More