Peer-to-Peer Lending in Thailand

Peer-to-peer lending (P2P or person-to-person lending) is a method of borrowing and lending money between equal parties without the involvement of a bank or other financial institution.

Loans are provided online through lending platforms and creditworthiness assessment tools.

Does P2P lending exist in Thailand?

P2P lending has been officially allowed in Thailand since 29 April 2019, following the issuance of the first regulatory framework in this area (Notification 4/2562 Re: Determination of Rules, Procedures and Conditions for P2P Lending Platforms and Companies by the Bank of Thailand).

Who can be a P2P platform provider?

A private or public limited company registered in Thailand;
A non-bank and non-financial institution (except its subsidiaries);
A minimum paid-up registered capital of 5 million baht;
At least 75% of shares must be held by Thai shareholders;
The director must not have been previously convicted or charged with fraud or corruption.

The platform provider is prohibited from holding funds, assets, or securities of lenders and borrowers. Therefore, a third-party custodian must be appointed. The custodian must be either an authorized trustee under the Securities and Exchange Commission (SEC) regulations or an authorized commercial bank (for escrow accounts) under the Bank of Thailand regulations.

Borrowers

Borrowers may be individuals who:

Are creditworthy
Are not P2P platform providers
Are not directors, authorized persons, or major shareholders of the platform provider
Have received personal loans from fewer than three different lenders

Loan amount limits

Consumer loans:
The credit limit depends on the borrower’s income. If the average monthly income is less than 30,000 baht, the credit limit cannot exceed 1.5 times the income. If the average monthly income is 30,000 baht or more, the credit limit cannot exceed 5 times the income. The average income must be calculated over a period of at least six months.

Business loans:
The credit limit is set at up to 50 million baht.

The interest rate on loans provided through P2P lending platforms must not exceed 15% per year.

Lenders

Lenders may be both individuals and legal entities. Lenders must have experience and understanding of lending activities and associated risks. A lender cannot be a platform provider. For individual lenders, the total lending amount must not exceed 500,000 baht within one year.

For inquiries regarding the organization of a P2P platform, please contact: (087) 348-57-03.