In general, you need to meet the following criteria in order to be eligible for a bank loan in Thailand:
- Hold at least a 1-year work permit or a Thai resident permit
- Provide a letter of employment indicating your year of service in Thailand and your annual salary. You may need to attach your pay slips as well.
- Include your employer’s company documents, as the banks might request these.
- Pass credit checks conducted by the banks.
- Ensure the combined total of your age and the loan period does not exceed 60 years.
- Have a stable and secure job.
- Maintain a fixed income that is three times higher than each loan repayment instalment.
- For some banks, the aggregate amortization of the loan must exceed 7 years. This is the total timeframe in which the loan, including the original amount borrowed and the gathered interest, is scheduled to be fully paid off – it’s essentially how long it’ll take for you to clear your debt.
In addition to these criteria, you’ll also need to submit the following documents:
- Copies of your passport, including visa page, identification card, or government office identification card.
- Confirmation of salary or income, including bank statements
- Copies of land or unit title deeds, sale, and purchase contracts
- If you’re married, you need to provide your marriage certificate.
Interest rates
Interest rates for loans from banks in Thailand can vary, but they typically stick to a fixed rate set by the bank. For example, as of June 2023, the Bank of Thailand’s Monetary Policy Committee announced an interest rate of 2.00%. But remember, this doesn’t apply to all financial dealings. You’ll find that interest rates for deposits are often much lower, while interest on loans can be much higher. A look at the rates from Bangkok Bank can give you a clearer picture.