Thailand Bank: Borrowing Thai Baht from a Thai Bank

January 7 2012 Categories: Exchange Control, Thailand Banking No comments yet

May a foreign Non Resident borrow in Thai Baht from a Thai Bank?

The question whether foreign Non-Resident may borrow in THB from Thai banks is another issue that generates a lot of confusion.

According to the Bank of Thailand, Thai Banks may not lend Thai Baht to foreign Non Residents but for a few exceptions as follows:

TYPE OF LOAN TO NON RESIDENT	CONDITIONS
Issuance of Credit Card	- Non Immigrant Visas and work permits, and- History and proof of income( 3 to 6 months)
Personal consumption loan (purchasing a car or consumption goods in leasing or by installments)	- Having valid work permit more than 1year, and- The amount must not exceed THB 5 ml, and- The loan must be fully collateralized
Loan to Non Resident residing in neighboring countries	- Prior approval from BOT must be sought on a case by case basis.

Note: The concept of Non Resident or Resident is as defined by immigration law.

Note: while a foreign Non Resident may in theory borrow up to 5,000,000 THB for personal consumption I never heard of one who actually did it but for cases such as purchasing a car or a bike in leasing or goods by installment.

Note: Even if a Non Resident may borrow up to 5,000,000 THB he may not do so to purchase a condominium freehold as for the time being one of the two conditions for a foreign investor to purchase a condominium freehold is to bring foreign currency into the country of an amount equivalent to the purchase price of the condominium. Only foreign Resident may purchase condominium in THB and finance the purchase through a loan in THB.

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

Originally posted 2009-08-02 07:16:25.

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