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

January 24, 2023

Thailand Tightens Rules for Consumer Loan Agreements

Subscribe to Updates

The Contract Committee of Thailand’s Consumer Protection Board has issued new requirements and prohibitions for consumer loan agreements. The Notification of the Contract Committee Re: Stipulation of Loan Business for Consumers as a Contract-Controlled Business B.E. 2565 (2022) was published in the Government Gazette on December 13, 2022, and will take effect after 90 days (i.e., on March 13, 2023).

The notification repeals and replaces the Contract Committee’s previous notifications regarding the same subject matter, which were issued in 2001 (Nos. 1–2), 2002 (No. 3), and 2015 (No. 4). The notification enhances protection for consumers by extending the scope of application and stringently regulating the content of agreements for loans to individual consumers.

Key Definitions

The scope of the notification is largely indicated by its definitions of a few key terms:

  • “Loan business for consumers” refers to a business in which the operator enters into an agreement to grant a loan to a consumer (i.e., not a juristic person) or to allow the consumer to borrow money from the business operator, whereby the consumer will spend money for a purpose other than their occupation or business to earn income. This includes granting loans to consumers through an electronic channel. The notification can also apply to personal loan businesses, digital loan businesses, and peer-to-peer lending businesses regulated by the Bank of Thailand.
  • “Business operators” include financial institutions under the law relating to financial institutions; banks established under specific laws; individuals who carry out a loan business in their ordinary course of business; and juristic persons that engage in loan business, securitization business, or asset management of rights to monetary claim. Certain types of businesses and organizations—such as cooperatives—are excluded from the scope of this notification.
  • “Interest” means legal interest in accordance with the Civil and Commercial Code, and it includes compensation, profits, and other benefits with the same characteristics as legal interest, regardless of name.

Required Loan Agreement Content

The notification requires that the loan agreement be clearly legible in Thai language, and it must be executed in two copies for both the lender and the borrower. The font size must not be smaller than two millimeters, with no more than 11 characters within one inch. The details that must be stipulated in the agreement include:

  • Interest rate and other expenses together with calculation formula;
  • Details about collection fees and expenses;
  • Conditions on default—in bold, italic or underlined text, or otherwise made more clearly visible than other terms and conditions;
  • Conditions for assignment of rights to claim repayment;
  • Conditions for payment in installments;
  • Notification duties and address to receive notifications by post or email;
  • Data protection rules, especially in case of disclosure of personal data to a third party; and
  • Conditions on guarantee by person.

If the loan agreement gives the lender the right to adjust the interest rate, the lender must notify all borrowers concerned in writing by registered post or email regarding any interest rate adjustment, depending on circumstances as stipulated in the Contract Committee’s notification.

Prohibited Loan Agreement Content

The Contract Committee’s notification prohibits the loan agreement from including certain clauses that provide excessive benefits to the lender, including:

  • Restriction or exemption of liabilities of the lender in case of its default.
  • Allowing the lender to claim for outstanding debt or call for repayment before the due date of the repayment period when the borrower is not in default.
  • Allowing the lender to terminate the agreement without written notification.
  • Allowing the lender to adjust the interest rate, fees, or expenses unless otherwise permitted under this notification.
  • Requiring the borrower to apply for insurance, except for a housing loan or loan with collateral.
  • Granting the lender the right to charge a penalty or fees before the due date for receiving payment has passed in accordance with the period specified in the agreement, except in certain circumstances prescribed in this notification.

Online, electronic, and digital loan businesses must also comply with this notification and ensure that the content of loan agreements complies with the specified requirements and prohibitions. Operators of platforms that act as an intermediary, such as peer-to-peer lending, must facilitate the distribution of loan agreements to the concerned parties (particularly the borrower).

Grandfather Clause

The provisions under this notification do not apply to loan agreements executed before the new notification’s effective date (i.e., March 13, 2023), which would have to be in accordance with the Contract Committee’s previous notification on consumer loans.

As the new notification has an extensive scope of application and notable requirements and prohibitions, business operators—particularly nonfinancial institutions—should prepare for these more rigid provisions and review their draft loan agreements to ensure full compliance.

For more information or advice on the notification’s requirements, review of draft loan agreements, or any other aspect of consumer lending in Thailand, please contact Nutavit Sirikan at [email protected].

Related Professionals

Practices

Banking and Finance

Location

RELATED INSIGHTS​ 

June 9, 2026
On April 28, 2026, the Central Bank of Myanmar (CBM) issued Notification No. 18/2026 introducing the new Foreign Remittance Business Regulations. The new regulations apply to companies intending to operate foreign remittance businesses in Myanmar that are not licensed banks, non-bank financial institutions, or other financial institutions. The regulations supersede and replace the previous regulatory framework governing foreign remittance businesses under CBM Notification No. 21/2019. While the overall structure remains familiar, the new regulations introduce more detailed requirements for licensing, operations, reporting, and compliance, with a stronger focus on transparency and regulatory oversight. Broader Licensing Requirements Under the new regulations, applicants must submit detailed business plans describing the use of information technology and mobile platforms, along with clear plans for handling remittances from workers abroad and resolving customer complaints. Financial Thresholds and Reporting Requirements The baseline financial thresholds remain unchanged. Licensees must maintain a security deposit of MMK 100 million in an escrow account, along with a separate revolving fund dedicated solely to remittance operations. The new regulations introduce more structured reporting obligations. Licensees are now required to submit daily remittance transaction data by the next business day before noon, in addition to monthly and periodic reporting requirements. Foreign bank account statements must also be submitted regularly, and licensees must provide updates on business operations every six months. Strengthened AML and CFT Framework The new regulations place a greater emphasis on anti-money laundering (AML) and counter financing of terrorism (CFT), with tighter controls over management changes. Any changes in shareholding, share transfers, or the appointment of key management personnel such as the managing director require prior approval from the CBM. Licensing Fees and Validity The new regulations increase licensing costs, while maintaining the same validity period of three years. The new regulations provide more detailed grounds for suspension and
Read More
May 25, 2026
After several years of policy discussion and continued efforts led by the Ministry of Commerce (MOC) to relax the list of reserved businesses under the Foreign Business Act B.E. 2542 (1999) (FBA), the reform process has now reached a significant milestone. On May 12, 2026, the Thai cabinet approved in principle two draft subordinate legislative instruments aimed at delisting certain reserved business activities under the FBA and reducing licensing requirements for foreign business operators. These developments signal a renewed and concrete effort by the government to modernize Thailand’s business regulatory framework in order to attract foreign investment and boost Thailand’s competitiveness in the global market. Nine Businesses Set for FBA Delisting Below is a list of the nine businesses that are being targeted for delisting from the FBA’s restrictions. A draft ministerial regulation would delist the first eight reserved businesses, while a royal decree has been drafted to delist the ninth business: Telecommunications services (Type 1 license only, covering operators without their own telecommunications infrastructure), under the supervision of the Office of the National Broadcasting and Telecommunications Commission. Treasury center services subject to the Foreign Exchange Control Act B.E. 2485 and under the supervision of the Bank of Thailand. Securities-collateralized lending, pursuant to the laws governing securities and exchange and derivatives regulated by the Securities and Exchange Commission. Agency, dealer, advisory, or fund management services relating to derivatives where the underlying assets fall outside the scope of the Derivatives Act B.E. 2546 (2003) Intra-group shared services, including administrative, human resources, and IT functions Intra-group domestic debt guarantee services Leasing of partial space for installation of financial service machines and automatic vending machines for employee use Petroleum drilling services Trading of agricultural product derivatives through a futures exchange, with physical delivery or receipt of agricultural products at a futures exchange–designated
Read More
March 5, 2026
Amid increasing financial globalization, Vietnam’s establishment of an International Financial Center (IFC) represents a strategic initiative to attract high-quality foreign investment and enhance the country’s position in the global financial system. In support of this objective, a Specialized Court was introduced under Resolution No. 222/2025/QH15 as a dedicated dispute resolution mechanism within the IFC framework. The Specialized Court at the IFC was subsequently operationalized by Law on the Specialized Court No. 150/2025/QH15, effective from January 1, 2026. Organizational Structure of the Specialized Court The Specialized Court at the IFC is a court within the system of the People’s Courts, organized and operating in accordance with the Law on the Specialized Court, and vested with jurisdiction to adjudicate and resolve cases at the IFC. The Specialized Court is located in Ho Chi Minh City and comprises (i) a Court of First Instance; (ii) a Court of Appeal, and (iii) a supporting apparatus. Jurisdiction of the Specialized Court The jurisdiction of the Specialized Court at the IFC is strictly defined based on both (i) the subject matter of the cases and (ii) the membership status of the parties involved. Specifically, the Specialized Court has jurisdiction over (except for cases involving public interests or the interests of the state) the following: Disputes arising from investment and business activities. Requests for recognition and enforcement in Vietnam of judgments and decisions of foreign courts and foreign arbitral awards. Requests related to dispute resolution by arbitration. Other disputes directly related to investment and business activities (to be specified by the Supreme People’s Court). Additionally, at least one party in the case must be a member of the IFC. The IFC’s membership status is established through registration, recognition as a member, or the grant of a license for establishment and operation within the IFC. In the
Read More
February 27, 2026
The Bank of Thailand (BOT) has officially implemented a new regulatory framework supervising systemically important retail payment systems (SIRPS), effective February 21, 2026, with PromptPay being the first payment system designated as a SIRPS. Under this new set of regulations, the BOT may designate payment systems under the Payment Systems Act B.E. 2560 (2017) as SIRPSs based on quantitative and qualitative assessments. Once a system is designated as a SIRPS, the operator becomes subject to expanded supervisory obligations beyond the general requirements of the Payment Systems Act. Enhanced Supervisory Requirements SIRPS operators must comply with a heightened supervisory regime across three key areas, outlined below. 1. Governance SIRPS operators must maintain robust and transparent governance structures, including: Balanced board composition, with at least one-third of the board comprising independent directors who represent stakeholders in the system (such as payment service providers, consumers, and experts). Independent directors may serve for no more than two consecutive terms. Subcommittees to assist the board in overseeing compliance, policy implementation, and operational strategy. Clear separation between executives responsible for risk and information security and those overseeing day-to-day business operations. Risk Management and System SecuritySIRPS operators must implement comprehensive risk management frameworks, including: Clear service agreements between the SIRPS operator and its direct participants (payment service providers who connect directly to the SIRPS), defining roles and responsibilities among stakeholders. These agreements must include obligations for direct SIRPS participants to supervise any indirect participants they onboard to ensure compliance with service agreements and business rules. A business continuity plan covering both IT and non-IT aspects, with annual review. The SIRPS must target service availability comparable to international payment infrastructures, including the ability to recover operations within two hours of a disruption and to maintain scalable operational capacity. Tools and controls to monitor and manage material or
Read More