I was once asked (by a Thai - not exactly friend but known off and on for a few years), if I could lend them a million baht. Their son was getting married and needed it for the dowry !! I was forewarned by another friend they were on their way, as apparently they seemed to have a list of people they thought could come up with it and I was next after him. Even better I had a chance to prepare a speech! I was absolutely furious and told them so . I put a nice twist on it about British manners and breech of etiquette because everyone likes to go on about Thais losing face; so I made absolutely certain they knew they had broken all rules by even daring to ask me and how mortified I was. Needless to say I never saw them again! That was definitely one of my better performances!

This teacher in the OP says he's paying back 7k a month on 1.2 million at 6%...not enough repayment man, need to double that at least. Half to blame are these entitled government workers who think it is their right to have stuff for nothing and don't understand what they are signing up for, and half to blame are the banks for the greedy entrapment of totally unsuitable borrowers who shouldn't be lent anything anyhow. Problem made by incompetent reasoning on both sides.

12 hours ago, webfact said:

They also called for the annual interest rate to drop to 1 per cent (from the current 5 and 7 per cent rates

Don't want much, do they? Good idea only to borrow what one can afford to repay, and to be fully aware of the terms

7 hours ago, robblok said:

I don't get the remark. Sorry. Are you saying i calculated it wrong ? The model might not be perfect but it gives a good indication of the interest percentage used. Its certainly not as much as what money lenders use and is about the same i paid when I had a mortgage on my home in Thailand.  (was around the same time).  

No Rob, just my Australian humor. No offence. Say a 30 yr loan, you are paying mostly interest for the first 5-7 years then you start to tackle the principal. Sounds like sour grapes from people that should have a handle on what is a contract and the exact terms of that contract. I bought my first place at 24 and read all the documents associated with that purchase. 

14 hours ago, Chris Lawrence said:

No Rob, just my Australian humor. No offence. Say a 30 yr loan, you are paying mostly interest for the first 5-7 years then you start to tackle the principal. Sounds like sour grapes from people that should have a handle on what is a contract and the exact terms of that contract. I bought my first place at 24 and read all the documents associated with that purchase. 

Yes its common knowledge for us who have some financial background that it works like that. First years in loans like that your only paying interest (unless you pay more). People also fail to see the impact of paying more at the start of the debt you pay off more on the principle and it gives a huge difference later on.

maybe they should stop getting expensive new 4 wheeled drive vehicles

This is what I see in Sattahip

I do feel the banks took advantage if this generation.  Just like they have done in all emerging markets.  Some of these teachers have loan payments that are over 65% or more if net income.   And the loan periods go till they are like 70.    I call this predatory lending practice.  And considering the typical financial understanding of most Thai people including degreed teachers this lending is criminal.