What is Personal Loans?
When you need to borrow money, you approach a financial institution or moneylender to get a personal loan or a line of credit. The lender will decide the loan amount (known as the principal amount) based on your annual income.
Personal loans in Thailand are unsecured loans, which means you don't have to put up any collateral when you borrow money. Some common uses for it include paying for your child's further education, starting a business, or paying off your existing debt.
There are many terms when you borrow money, such as interest rates, loan tenure, drawdown terms, repayment fees and any other fees and charges. These varies from lender to lender.
Uses of a Personal Loan
People in Thailand uses personal loans for various reasons. They include the following:
Consolidating debts
Medical emergencies
Family emergencies
Making a down payment for a wedding
Business or investment purposes
Education planning
Property purchases
Transferring outstanding credit balances for lower interest rates
Documents Needed for Personal Loan Applications
In Thailand, you are required to be at least 20 years old, but not over 60 years old, must be a Thailand citizen or have Permanent Resident (PR) status, and earn a monthly salary of at least THB 10,000.
A copy of your ID card or government or state enterprise employee card
Your latest salary slips and a copy of payroll account records
A census registration
Your credit history plays a big part in your loan approval as well. You need a good credit history to show that you can repay your loan. Banks have access to it, and take this as part of their evaluation process.
What You Need to Know Before Getting a Personal Loan
Credit history, interest rates and loan approval
Before your loan application is approved, a thorough credit check is done to make sure that you are able to repay your loan. A poor credit history could lead to higher interest rates or loan rejection. You should always maintain a good credit history.
Before your loan application is approved, a thorough credit check is done to make sure that you are able to repay your loan. A poor credit history could lead to higher interest rates or loan rejection. You should always maintain a good credit history.
Additional fees and charges
It's important to check what the additional fees and charges that the lender imposes. The most common fees are annual fees, handling and administrative fees, repayment charges and any late payment fees.
Because Thailand's market is highly competitive, some lenders waive off certain charges completely, such as the annual fees.
Fixed Instalment Loans vs Overdrafts
Fixed Instalment Loans and Overdrafts are the most popular loan types in Thailand.
Fixed Instalment Loans are bound to a fixed instalment schedule with fixed amounts to be paid, over an agreed loan tenure. On the other hand, Overdrafts are a "safety measure" for those with credit cards or checking accounts. An overdraft protects the borrower from incurring additional fees and charges when they withdraw money beyond their current credit limit. However, overdrafts also come with their own credit limit, so people are discouraged from withdrawing over the limit multiple times.
Keep in mind that there are serious consequences when you fail to repay your loan on time, whether or not your loan is secured or unsecured.
EIR is considered to be a better tool for comparison
The Effective Interest Rates (EIR) includes all fees and charges (e.g. annual fees and handling fees) and interest is calculated on a daily basis. This is the best way to compare across different loan products to find the best deal.
MoneyGuru.co.th's team aims to provide all the information you need to make a decision on the best deal for personal loans. With our easy-to-use comparison tool for Personal Loans, you can easily search for the right one based on your needs.
When you need to borrow money, you approach a financial institution or moneylender to get a personal loan or a line of credit. The lender will decide the loan amount (known as the principal amount) based on your annual income.
Personal loans in Thailand are unsecured loans, which means you don't have to put up any collateral when you borrow money. Some common uses for it include paying for your child's further education, starting a business, or paying off your existing debt.
There are many terms when you borrow money, such as interest rates, loan tenure, drawdown terms, repayment fees and any other fees and charges. These varies from lender to lender.
Uses of a Personal Loan
People in Thailand uses personal loans for various reasons. They include the following:
Consolidating debts
Medical emergencies
Family emergencies
Making a down payment for a wedding
Business or investment purposes
Education planning
Property purchases
Transferring outstanding credit balances for lower interest rates
Documents Needed for Personal Loan Applications
In Thailand, you are required to be at least 20 years old, but not over 60 years old, must be a Thailand citizen or have Permanent Resident (PR) status, and earn a monthly salary of at least THB 10,000.
A copy of your ID card or government or state enterprise employee card
Your latest salary slips and a copy of payroll account records
A census registration
Your credit history plays a big part in your loan approval as well. You need a good credit history to show that you can repay your loan. Banks have access to it, and take this as part of their evaluation process.
What You Need to Know Before Getting a Personal Loan
Credit history, interest rates and loan approval
Before your loan application is approved, a thorough credit check is done to make sure that you are able to repay your loan. A poor credit history could lead to higher interest rates or loan rejection. You should always maintain a good credit history.
Before your loan application is approved, a thorough credit check is done to make sure that you are able to repay your loan. A poor credit history could lead to higher interest rates or loan rejection. You should always maintain a good credit history.
Additional fees and charges
It's important to check what the additional fees and charges that the lender imposes. The most common fees are annual fees, handling and administrative fees, repayment charges and any late payment fees.
Because Thailand's market is highly competitive, some lenders waive off certain charges completely, such as the annual fees.
Fixed Instalment Loans vs Overdrafts
Fixed Instalment Loans and Overdrafts are the most popular loan types in Thailand.
Fixed Instalment Loans are bound to a fixed instalment schedule with fixed amounts to be paid, over an agreed loan tenure. On the other hand, Overdrafts are a "safety measure" for those with credit cards or checking accounts. An overdraft protects the borrower from incurring additional fees and charges when they withdraw money beyond their current credit limit. However, overdrafts also come with their own credit limit, so people are discouraged from withdrawing over the limit multiple times.
Keep in mind that there are serious consequences when you fail to repay your loan on time, whether or not your loan is secured or unsecured.
EIR is considered to be a better tool for comparison
The Effective Interest Rates (EIR) includes all fees and charges (e.g. annual fees and handling fees) and interest is calculated on a daily basis. This is the best way to compare across different loan products to find the best deal.
MoneyGuru.co.th's team aims to provide all the information you need to make a decision on the best deal for personal loans. With our easy-to-use comparison tool for Personal Loans, you can easily search for the right one based on your needs.
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