Loan agreement

A loan agreement in the amount of more than 2,000 baht must be concluded in simple writing form and signed by two witnesses.

The maximum interest rate on a loan agreement is 15%.

If interest is provided, but the interest rate is not set, the general rate of 7.5% is applied.

If interest is not fixed by the agreement, the revenue department may have some questions. For example, if the parties of the contract are legal entities, an interest-free loan as an attempt by the lender to conceal the income and reduce the tax base. The tax office may conduct a market appraisal of the contract and set an interest rate for the agreement.

Real estate can be a mortgage to secure the loan agreement. In this case, the mortgage shall be registered in the land department and a corresponding note shall be made in the chanot. It should be taken into account that if the debtor fails to comply with the terms of the agreement, the mortgaged property can be sold only with the court decision.

The mandatory condition of entering into a loan agreement is to pay stamp duty in the amount of 1 Baht for every 2,000 Baht of the loan amount, but not more than 10,000 Baht. If the stamp duty was not paid in the future it may become an obstacle when applying to the court in a case of a dispute under the contract.

It is very important to protect your interests and take into account all the details when drawing up a loan agreement, drawing up a mortgage agreement and paying stamp duty.

For all questions regarding the preparation or verification of loan agreements, please contact us:

+ 6687-348-57-03 (WhatsApp, Viber).

Author: Aleksandra Agapitova

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