Loan Agreement for Thailand
Create a legally sound private loan agreement that protects both lender and borrower under Thai law
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Thailand law compliant
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English
Who Needs This Document
- Expats lending money to a spouse, friend, or business partner in Thailand
- Small business owners providing or receiving private loans
- Individuals formalizing an existing informal loan arrangement
- Anyone lending or borrowing a significant amount of money privately in Thailand
What you'll need
What Data You Will Need
Lender full name
As shown on ID card or passport
Borrower full name
As shown on ID card or passport
Loan amount
In Thai Baht
Interest rate
Annual rate (max 15% under Thai law) or interest-free
Repayment schedule
Lump sum or monthly installments
Loan term
Duration in months
Collateral details
If providing security (optional)
Coverage
What This Version Covers for Thailand
- Compliant with Thailand Civil and Commercial Code (Sections 650-656 on Loan of Money)
- Interest rate capped at 15% per annum as required by Section 654
- Stamp duty provisions per the Thai Revenue Code (1 THB per 2,000 THB of loan amount)
- Late payment penalties within Thai legal limits (max 15% per annum combined)
- Optional collateral/security provisions under Thai pledge and mortgage law
- Bilingual format (English-Thai) for legal recognition in Thai courts
Document structure
Document Structure
1
Parties
Full identification of lender and borrower
2
Loan Amount and Disbursement
Principal amount, disbursement date and method
3
Interest
Interest rate, calculation method, Thai legal maximum
4
Repayment Terms
Schedule, installment amounts, payment method
5
Early Repayment
Prepayment rights and conditions
6
Late Payment and Penalties
Default interest, acceleration clause
7
Collateral (optional)
Security provided to guarantee the loan
8
Events of Default
Conditions triggering immediate repayment
9
Governing Law and Disputes
Thai law, negotiation, court jurisdiction
10
General Provisions
Amendments, severability, entire agreement, notices
FAQ
Frequently Asked Questions
What is the maximum interest rate I can charge on a private loan in Thailand?
Under Section 654 of the Thai Civil and Commercial Code, the maximum interest rate for a private loan is 15% per annum. Any interest charged above this rate is void as to the excess. This applies to all private lending between individuals.
Is a written loan agreement legally required in Thailand?
For loans exceeding 2,000 THB, a written agreement or evidence in writing is required for the loan to be enforceable in court (Section 653 of the Civil and Commercial Code). Without a written agreement, you cannot sue to recover the money.
What is stamp duty and do I need to pay it?
Stamp duty is a tax on loan agreements at the rate of 1 THB per 2,000 THB of loan amount (or fraction thereof), capped at 10,000 THB. The stamp must be affixed to the original agreement before or at signing. Without proper stamp duty, the document may not be admissible as evidence in Thai courts.
Can a foreigner lend money in Thailand?
Yes, foreigners can enter into private loan agreements in Thailand. However, regular lending as a business activity requires a license. Occasional private loans to individuals are generally permitted, but large or frequent lending may attract regulatory scrutiny.
What happens if the borrower doesn't repay?
If the borrower defaults, the lender can file a civil lawsuit in Thai court to recover the debt. If collateral was provided, the lender may enforce the security. The statute of limitations for loan claims in Thailand is generally 10 years from the date the debt becomes due.
Do I need witnesses for a loan agreement?
Witnesses are not legally required for a loan agreement in Thailand, but they are strongly recommended. Having two witnesses sign the agreement strengthens its evidentiary value in court and makes it harder for either party to dispute the agreement later.
Can I charge compound interest on a private loan?
Compound interest (interest on interest) is not automatically allowed under Thai law. Under Section 655, the parties may agree in writing that interest shall be compounded, but the total effective rate must still not exceed the 15% per annum maximum.
What should I do if the borrower is a foreigner?
The agreement should include the borrower's passport number and home country address in addition to their Thai address. Consider specifying Thai courts as the venue for dispute resolution, as enforcement of foreign judgments can be complex.
Last Updated:
2026-03-21
Jurisdiction:
Thailand
Language:
English
Disclaimer
This document is provided for informational purposes and does not constitute legal advice. For complex loan arrangements, collateral involving real property, or amounts exceeding 1,000,000 THB, we recommend consulting with a qualified Thai lawyer.
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