What are the Different Types of Loan in Thailand

This guide will take you along with all types of loans available in Thailand and makes it easy for you to choose the right one.

What Type of Loans Are Available In Thailand?

If you need to borrow money, you’ll need to decide which type of loan is right for your situation.

To help you get started with your loan, let’s see the type of loans available in Thailand.

Key Points

  • If you are in need of urgent cash, you can consider personal loans, payday loans, or short-term loans.
  • If you need a loan to help your business, many types of business loans are available in Thailand.
  • For specific purchases, such as a property in Thailand, you can opt for a mortgage.

Loans For When You Need Urgent Cash

Personal Loans
A personal loan is a form of credit that can help you make a big purchase or consolidate high-interest debts. Because personal loans typically have lower interest rates than credit cards, they can be used to consolidate multiple credit card debts into a single, lower-cost monthly payment. Personal loans are good for a variety of purposes—from consolidating debt to fulfilling your family dreams and they are personal, which means your reasons are yours. A Personal Loan is convenient since it can be extended over time in manageable installments. When you need money fast and don’t want to deal with the burden of borrowing, a Personal Loan is a perfect choice. You can get a Personal Loan quickly and conveniently for medical costs or a wedding, overseas travel or study abroad tuition, home repair or short-term cash.

Payday Loans
Loans that help you through tough times in your life where you need immediate cash. If you have bad credit and no savings, a payday loan can seem to be your only choice in a financial emergency. Payday loans are a form of cash advance that is intended to help you get by before the next paycheck arrives. Once you’re approved, the company will lend you a small amount. Payday loans are mostly given to those with poor or no credit and only need an income and a bank account. Payday loans can be a quick way to get money into your bank account, and the forms are simple to fill out and only include a few details. The speed at which the loan is approved will be determined by whether you have satisfied all of the required conditions and given accurate details.

Short-Term Loans
Short term loans offer you borrowed capital, plus interest, usually over a year or less, that you pay back. You might consider getting a short-term loan if you’ve come through any tough times and need cash quickly. A short-term loan is a form of loan acquired in order to fund a temporary need for personal or business resources. When the cash flow is lacking, short-term loans offer fast cash.

Loans For Business

SME Loans
These loans are tailored to satisfy the needs of SMEs. Small and medium-sized enterprises are central to economic development, especially in developing economies. In order for SMEs to expand and have a positive impact, they need access to capital markets in order for the economy to survive. SME loans help the company prosper and extend. You have all the resources required to move the vessel to the next stage of greater finance, personnel, technologies and facilities

Small Business loan
Multiple kinds of small business loans are available
Depending on the business needs, the duration of the loan, and the particular terms of the loan, the choices differ. The performance element of SMEs has been discussed by several scholars, who argue that it is important to achieve such success in order to achieve economic development, job production, and the elimination of hunger.

Small business line of credit
Your business can obtain funds from the loan if appropriate under a small business line of credit, and the line of credit is helpful for handling the cash flow and unforeseen expenditures of a company.

Working capital loans
A loan for working capital is a tool for debt financing used by the organization to fund its everyday activities. Companies use such loans to handle sales and cost volatility due to seasonality or other factors in their company.

Foreigners should have one year work permit (or a permanent residency) and a job in Thailand to obtain any type of loan in Thailand.

Home Loan

A home loan simply means a sum of money borrowed from a financial institution or bank to purchase a house. Home loans consist of an adjustable or fixed interest rate and payment terms. The property is mortgaged to the lender as a security till the repayment of the loan. People generally take a home loan for either buying a house/flat or a plot of land for the construction of the house. Buying a House is the best investment. You go through all of the documents you must sign. Bring deposit funds in the form of a certified check. You will be notified of the amount prior to your appointment. Shortly after you sign documents, your loan will fund and you will be the proud owner of a home.

Timely return of a loan makes it easier to borrow the second time

Car Loan

A car loan is an amount of money lent by a consumer to buy a car. Many of the same laws and procedures that relate to other loans are followed by car loans. A car loan helps a driver to buy a car at the maximum expense by making annual payments over a period of time. You have the peace of mind that you’re not going to end up paying for those repairs for quite a long time as you finance a new car. You legally may not require any collateral to get a car loan. This is because the car would act as the collateral for the loan immediately. You’re probably eligible to get a car loan, even though you have bad credit. The best thing about car loans is that as long as you keep on top of payment dates, they actually support your financial history

Motorbike Loan

Loans that fulfill your dream of riding a Motorbike on an open road are Motorbike Loans. Motorbike loans are mostly guaranteed loans, which means you need collateral to back them up. In this situation, the collateral is usually the motorcycle itself. Your property will be repossessed by the lender when you get a guaranteed loan if you refuse to make the payments. Make sure that you have an idea of the Motorbike manufacturer and model you really like before you apply for a loan. Make sure you test drive the motorbike before you purchase to see if you like how it rides.

Other Types of Loans

Loans Guides