On April 29, 2019, the Bank of Thailand issued Notification 4/2562 Re: The Determination of Rules, Procedures, and Conditions for Peer-to-Peer (P2P) Lending Businesses and Platforms. The notification took effect the following day.
The notification lays out a number of guidelines for P2P platform providers and P2P lenders. A P2P platform provider is defined as a person who provides an electronic system or network for P2P lending, while a lender is a natural person or juristic person who offers a loan through an electronic system or network (excluding crowdfunding providers). Key provisions are summarized below.
P2P Platform Provider
A P2P platform provider must:
Directors of a platform provider must not have been involved in, or accused of, fraud or corruption; must not demonstrate a lack of qualifications or professional standards; and must be financially sound.
Under this notification, borrowers must be natural persons who:
The notification also prescribes credit limits for loans. Loans for consumer purposes are limited based on the borrowers’ average monthly income as follows.
Borrowers can obtain loans for business purposes up to a maximum of THB 50 million.
Unlike borrowers, lenders (who must not also be P2P platform providers) can be either natural or juristic persons. They must conduct client suitability assessments before providing loans to ensure adequate knowledge and understanding of each loan and the associated risks.
The notification also prescribes credit limits for providing loans as follows.
The interest rate for loans offered through a P2P lending platform must not exceed 15% per year, in accordance with the Civil and Commercial Code of Thailand.
For more information on the notification, or on any aspect of the P2P lending business in Thailand, please contact our Bangkok office at [email protected] or +66 2056 5555.