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​ 

January 9, 2026
Vietnam has taken a decisive step into the global artificial intelligence regulatory landscape with the promulgation of the Law on Artificial Intelligence No. 134/2025/QH15 (AI Law), adopted on December 10, 2025, and effective from March 1, 2026. As one of the earliest comprehensive, standalone AI statutes in Southeast Asia, the AI Law signals Vietnam’s ambition to position itself as both an innovation-friendly and governance-conscious AI market. In doing so, the legislature has also streamlined Vietnam’s AI regulatory architecture. The AI Law repeals most AI-related provisions previously embedded in the Law on Digital Technology Industry No. 71/2025/QH15, consolidating AI governance under a single, unified legal framework. This structural move underscores an intent to provide greater regulatory clarity and coherence for businesses operating across the AI value chain. Against this backdrop, the key question for AI developers, providers, deployers, and governance teams is how the new risk-based framework will shape compliance expectations, operational decisions, and governance design in practice. This article examines the new AI Law through that practical lens, focusing on what it means for AI businesses operating in or into Vietnam. Scope of Application The AI Law applies broadly to Vietnamese organizations and individuals, as well as foreign entities that participate in AI-related activities within Vietnam. The law expressly excludes AI activities conducted solely for national defense, security, and cryptography purposes. A defining feature of the AI Law is that it regulates by role, not by industry. It distinguishes between: Developers, who design, build, train, test, or fine-tune AI models and have direct control over the technical methods, training data, or model parameters; Providers, who place AI systems on the market or put them into use under their own names; Deployers, who use AI systems under their control in professional, commercial, or service-provision activities; Users, who interact with AI
Read More
January 9, 2026
Thailand continues to advance its legal and regulatory framework for the technology sector, with several key laws undergoing review and proposed amendments. These developments reflect Thailand’s broader efforts to ensure that its regulatory landscape keeps pace with rapid technological change and aligns more closely with international standards and best practices. The following are key legal developments and proposed legislative reforms in 2026 that are expected to impact businesses operating in the technology sector and the broader Thai business landscape. Data Privacy and Cybersecurity Personal Data Protection Act B.E. 2562 (2019) Following the full enforcement of Thailand’s Personal Data Protection Act (PDPA) in June 2022, businesses and practitioners have identified practical implementation challenges and interpretative issues. These challenges were reflected in an effectiveness assessment conducted by the Personal Data Protection Committee (PDPC) in late 2024. The PDPC published a set of principles for public consultation to identify issues and directions for potential amendments to the PDPA. Key issues: Emerging issues include clarifying the definitions of “data controller,” “data processor,” and “criminal record”; revisiting the scope of sensitive personal data to better reflect Thailand’s context; proposing amendments to the hierarchy of legal bases to avoid misconceptions of consent as the default legal basis; and clarifying the required level of expressiveness for explicit consent, as well as rules for collecting personal data from other sources. Current status: The first round of public consultation has concluded. Next steps: The proposed amendments are proceeding to a revised draft following the consultation outcomes. Cybersecurity Act B.E. 2562 (2019) Thailand is moving forward with proposed amendments to enhance the effectiveness of its national cybersecurity framework, as evolving digital technologies bring new risks such as misinformation, system intrusions, and attacks on critical infrastructure, making cybersecurity a national priority. Key issues: The amendments aim to clarify and strengthen
Read More
January 8, 2026
Thailand’s Digital Government Development Agency (DGA) has proposed new standards that would require government agencies to select cloud services exclusively from a preapproved shortlist of providers. The draft Digital Government Standards re: Cloud Service Provider Standards aims to strengthen procurement confidence and reduce risks associated with selecting cloud service providers that do not meet the required standards. A public hearing period on these standards concluded on December 27, 2025. The DGA will now review submitted comments and consider revising the standards accordingly. Shortlisted Cloud Service Provider Tiers The draft standards establish three tiers of cloud service providers based on their assessed service capability levels, core qualifications, and certifications. The DGA sets qualification requirements for each tier, and it is at the discretion of each agency to select the tier of cloud service provider that best suits its operational needs, as follows: Tier 1 cloud service providers are suitable for providing services involving disclosable official data. Tier 2 cloud service providers are suitable for handling official data and protected data, such as personal data, which requires a high-security public cloud (e.g., virtual private cloud). Tier 3 cloud service providers are suitable for providing services to agencies with specific regulatory and security requirements that handle highly protected data, such as the national security system. These providers must offer sovereign or hybrid cloud as stipulated by the Ministry of Digital Economy and Society. All tiers of cloud service providers must be legal entities incorporated under Thai law and can be authorized distributors of offshore cloud service providers. However, each tier will be subject to different requirements, including infrastructure obligations. Government agencies are encouraged to select a cloud service provider appropriate for their intended use. For example, if a government agency intends to procure cloud services for operating applications that process personal data,
Read More
January 8, 2026
Thailand has enacted comprehensive sexual harassment legislation that significantly expands criminal penalties and creates new compliance obligations for online platform operators. The Act Amending the Penal Code (No. 30) B.E. 2568 (2025), enacted on December 29, 2025, and taking effect the following day, introduces a comprehensive definition of sexual harassment, establishes new criminal offenses with graduated penalties, and imposes content removal obligations on social media platforms and computer system service providers. The amendment, which establishes a comprehensive framework for addressing sexual harassment in both physical and digital environments, significantly expands legal exposure for online service operators. It also grants courts authority to order takedowns of violating data accessible to the public. Definition of Sexual Harassment The law introduces “sexual harassment” as a distinct statutory concept covering physical conduct, verbal conduct, sounds, gestures, expressions, postures, communications, surveillance, stalking, and acts committed through computer systems or electronic devices. Conduct qualifies as sexual harassment when it is sexual in nature and likely to cause the victim distress, annoyance, embarrassment, humiliation, fear, or a sense of sexual insecurity. Criminal Offenses and Penalties The amended Penal Code establishes graduated penalties based on the severity and context of the harassment—including enhanced penalties for public or online conduct. For instance: Basic sexual harassment is punishable by imprisonment for up to one year, a fine of up to THB 20,000, or both. Continuous or repeated harassment that prevents normal life escalates penalties to imprisonment for up to two years, a fine of up to THB 40,000, or both. Critically for online operators, harassment committed in public places, in the presence of the public, or through computer systems accessible to the general public triggers imprisonment for up to three years, a fine of up to THB 60,000, or both. Acts of harassment committed by supervisors, employers, or others
Read More