What should a Personal Loan Agreement include under Thai law?

1. Definitions and Interpretation
2. The Loan
3. Interest
4. Repayment and Prepayment
5. Evidence of Payment and Return of this Agreement
6. Late Payment and Default
7. Borrower's Statements and Undertakings
8. Lender's Statements
9. Costs, Stamp Duty and Taxes
10. Personal Data
11. Notices
12. Governing Law and Disputes
13. General

• A loan of money is complete only when the money is delivered. Transfer the Loan to the Borrower's own account stated in Clause 2.2 and keep the transfer slip with the signed Agreement. Ask the Borrower to confirm receipt by message or email the same day and to sign Schedule 1.Count the cash together and have the Borrower sign Schedule 1 at the same moment. If possible, hand over the cash in front of the witnesses.
• Under Thai law, a loan of more than 2,000 THB can be enforced in court only if there is written evidence signed by the Borrower. The Lender keeps the original signed by the Borrower (Clause 13.6).
• Do not deduct interest or a fee from the Loan before handing it over, and do not write a higher amount than the money actually lent. Both are criminal offences under Thai law on excessive interest, and the agreed interest may be lost entirely.

• A loan agreement carries stamp duty of 1 THB for every 2,000 THB or part of 2,000 THB of the loan, up to a maximum of 10,000 THB. On the amount you entered, the duty on the original is the amount the system calculates from the figures entered, and a signed counterpart carries the amount the system calculates from the figures entered.
• By law the Lender pays the duty; this Agreement allocates it as stated in Clause 9.1. Buy and affix the stamps and cancel them on the day of signing, or pay through the Revenue Department's e-Stamp Duty system if the Agreement is signed electronically.
• An unstamped loan agreement cannot be used as evidence in a Thai civil court until the duty and a surcharge of up to six times the duty are paid.

• The Borrower should pay only by transfer to the account in Clause 4.3, or obtain a receipt signed by the Lender for every payment (Clause 5.1). In a Thai court, repayment of a written loan can be proved only by a document signed by the Lender, by the return of the loan document, or by its cancellation.
• When the Loan is fully repaid, the Borrower should take back the original Agreement or have it marked "repaid in full" and signed by the Lender (Clause 5.2).
• Interest is simple interest. Interest may be added to the principal only after it has been overdue for at least one year, and only by a separate signed document (Clause 3.3).

• Send a written demand stating the overdue amount (Clause 6.1(a)). Only after … days without payment may the Lender call in the whole Loan, by a second written notice (Clause 6.3).
• Interest on late payment is charged only on the amount overdue, which for instalments means only the principal of the missed instalment (Clause 6.2). Collect the debt only through the courts; threats, public shaming or calls to the Borrower's employer are prohibited (Clause 6.4) and may be offences.
• A small claim can usually be filed at the Thai district court (Kwaeng court) for the area where the Borrower lives or where the Agreement was made. A court works in Thai, so the Lender must file a certified Thai translation of this Agreement.
• As a general rule, the right to sue for the principal is lost 10 years after it becomes due, and for unpaid interest 5 years after each amount becomes due. Do not wait.
• If the Borrower leaves Thailand and has no assets here, a Thai judgment may be difficult to enforce abroad. Lend only what you can afford to lose, or ask for a guarantor or collateral instead.

• Interest received is taxable income of the Lender. If the Borrower is a company, it may have to withhold tax from the interest (Clause 9.2). Ask an accountant before the first interest payment.
• Large transfers of the Loan into or out of Thailand may need to state their purpose to the bank under Thai exchange control rules. Keep the bank's transfer documents with the Agreement.

• The Lender's spouse must sign the consent line on the signature page before the money is handed over. Without that consent, the spouse may later ask a court to revoke the loan transaction.

Compiled from the notes that accompany the English contract templates on this site, published by Phuwara Krobtaku (ภูวรา ครอบตะคุ), Thai attorney-at-law, licence no. 477/2558. The short answer and summary at the top of this page are put together by the site from the template's clause headings and notes. Statutes are quoted only in the official Thai text: Thai is the only official language of Thai legislation, and an unofficial translation can mislead. Article registry OKC-3A1679. If you reuse this content, please credit the author and link to the original.