When money is loan in Thailand it is known as a ‘loan of consumption’ as the money is consumed. If you borrow money in Thailand then you are responsible for the cost of the contract, delivery and also the cost of return of what you have borrowed. The Thai courts treat loans as follows with regards to evidence.

• Loans under 2,000 Baht requires a witness;
• Loans over 2,000 Baht requires documentary evidence.

Generally the courts will not allow interest rates over 15% per year. If there is a written agreement which makes it higher the courts will lower this to 15% per year unless there are specific types of loans with the law allows you to charge more than 15% per year. Compound interest is also not allowed except under certain circumstances which the courts may establish. This tends to again be mainly commercial agreements where both parties had agreed to it.

If there was no interest agreed to in the loan agreement the courts will normally place 7.5% interest per year on the loan. If repayment has to be made in services or in goods the courts will look at the value of the goods at the time of delivery to see if the value is what has been agreed upon in the agreement. With regards to foreign judgements, these are not enforceable in Thailand unless a new case is opened with the courts and the foreign judgment used as part of the evidence of the trial.

Speak to a lawyer in thailand about loans and what the Thai courts will allow with regards to interest, payments and foreign judgements being enforced in Thailand.