To provide some additional relief to entrepreneurs that have been financially affected by the COVID-19 pandemic, Thailand has released a new emergency decree that allows financial institutions to offer soft loans to eligible small and medium enterprises (SMEs), waiving the usual mortgage registration fee for loans of this type.
The Emergency Decree on the Provision of Financial Assistance for Entrepreneurs Affected by the COVID-19 Pandemic B.E. 2563 (2020) came into effect on April 19, 2020. Section 9 of the decree states that financial institutions will be exempted from the fee for registration of immovable property and condominium unit mortgages that result from the granting of the soft loans under the emergency decree, valid from April 19, 2020. No expiration date is specified.
To determine eligibility for the exemption, the Department of Lands (DOL) has set the following criteria for the parties:
The following documents must also be submitted to the DOL:
In addition, the exemption applies to any mortgage of a third party’s immovable property that is used as security for an SME soft loan granted under the emergency decree, provided that the SME’s name is specified on Form C4.2.