Giving a loan to a friend - advice needed, how to do it legitimately

[observer90210]

Why argue ? Lend her the money and you will see for yourself with time. As my taxi driver here always says...."up to you"...

...and if you really want a solid legal advice, ask a proper law firm and be prepared to shell out more money then the loan maybe, in case it goes to court after some time.

Edited May 26, 2019 by observer90210

[Fred white]

don't do it we did it to a family member and now are having a hard time getting them to make their payments

[Guest]

1 hour ago, 4MyEgo said:

Yes well aware of what you are saying, but there are many possible scenarios that could not hold up to a contract, a piece of paper.

 

I always look further down the line, for example what if the borrower told the bank that she could not afford to repay the banks mortgage on her condo, that is what I was referring too, what would A then do, i.e. continue to pay B or would he receive a letter from the bank advising him that he would have to pay the bank and not B.

 

I think you know the answer, foreclosure is always around the corner if you can't see it coming.

 

I think we both agree that B should keeps his hands in his pockets, A not get involved and let things work themselves out, worst case scenario, A might have to move, B retains his cash with zero interest, but still has his cash and as for A, well, she got herself in this mess and has to find her way out as opposed to dumping it on A, I say that harshly because if she didn't want help, she wouldn't of mentioned it, and as I said before, A should toughen up because he doesn't know what he is getting B into, e.g. what other debts does she have that A & B don't know about.

 

Read lots of stories here where people have owned condos and lost them from gambling debts, credit cards maxed etc etc, perhaps A might want to guarantee her to B, after all B is a friend and A feels confident enough to support A, right ?

I think we are on the same page here, and this "desperate credit card debtor" needs to do what the rest of us do ... it has two moving parts.  Tighten belt / pay your bills.

[shaurene]

Two main quotes.

never lend money to friends or family and never give a job to a family member.

i loaned 3 times to my Thai wife's family, never got 1 baht back. And one was a high BUDA Monk to buy a piece of land in the outback for a small temple.

you could trust the likes of Al Capone with a loan than a Thai. They will steal off you to get money and then say ERR when you catch them 

bloody Nght mare.

 

[rumak]

sorry, I cannot read this thread past page 2.   99%  of those posting just have dire warnings about lending money.    I would bet that they would be correct...also about 99% of the time.   If you like those odds, well, go ahead.

[metempsychotic]

13 hours ago, Curt1591 said:

300,000 baht on credit cards? 



 

300000 baht is a pittance compared to the debt many in the west run up. 

[AlexRich]

22 minutes ago, metempsychotic said:

300000 baht is a pittance compared to the debt many in the west run up. 

Everything is relative ... what percentage of an average Thais take home pay does it represent? Quite a bit I’d imagine.

[4MyEgo]

2 hours ago, Mavideol said:

my father taught me......only lend money to a friend if you are ready to loose both

I lost money lending to a visiting cousin once, $1,000AUS, so I learnt, then I loaned my sister-in-law 30,000 baht to finish off building the family house, never seen it, never been raised, over the past 12 years, she has asked my wife, her sister at least twice, 3 times a year, can your husband lend me 10,000, 20,000, 30,000 baht she has a kid in uni, and one just starting school, is single and earns a modest income.

 

My wife's reply is always, you should have kept one foot in the boat before you pushed away from the shore, suffice to say, if you pay the money 30,000 baht you borrowed 12 years ago back, my husband might lend you some, he might not, up to you, the in-laws asked once, the other sister-in-law asked and all have been told, my husband won't lend money to our family because our sister/daughter borrowed money from him, 30,000 baht 12 years ago to finish building the house and hasn't paid him back, all go away head down, but always come back, must be amnesia ?

 

The above said, I have lent money to two very very close long term 3 decade friendships to mates in businesses, $100,000 and $40,000 both paid me back within a month, never asked again but I know if I ever needed their help or visa a versa it would be there without even thinking if it would come back, rare friendships, asset rich, cash poor.

 

Your father's wisdom is mostly correct, i.e. 99% although there is that 1% out there that I have experienced.

[Searat7]

14 hours ago, Curt1591 said:

300,000 baht on credit cards? 



 

I have a friend with same situation. Banks in Thailand have extended entirely too much credit to many people even though there is a credit bureau. Debtors cannot file for bankruptcy and the banks will take non-payers to court where they will attach their salary unless an acceptable repayment plan is reached. 

[Seth1a2a]

bangkokequity

• Super Member
•  
• Since you are the renter of the condo, form an agreement that all rent payments will go to "B" until the loan is satisfied, and make the sale of the condo contingent on TWO signatures.  The person borrowing, and the person lending.

_____________________________________________________________________

 

Taking it a step further........

 

 It appears that the three of you can setup a payment plan

and a simultaneous guarantee that the loss would be minimized if she failed to perform as agreed.

       Cut up or return all the cards to insure no new debt gets added to the deal.

Calculate the actual amount she will be able to pay each month. 

OP Makes his condo payment directly to the credit card balance or lender only. 

Lending friend pays 2  times the amount borrower actually pays towards the debt (remember, she was going to pay back the loan in installments anyway. ) If she does not pay her share then the deal is off. Sample ....she pays 30,000/m OP 15000/m lender pays 60,000/m

3 months =315000 to credit card plus accumulated interest.  

 

You still have the condo payment as collateral but for a smaller 180000 amount rather than the full 300,000 to collect.  

Next OP pays lender his 15,000/m + she pays her 30,000/m =45,000/m for the next 4 months

to pay back the 180,000 owed the lender.

If she reneges,  she loses 15000 from OP/month till OP pays off his friend the 180000 for the next 12 months. All of this should be spelled out in the contract and witnessed by a neutral party In the event she grows fangs and tries to sue you for non-payment of rent or evict you for other reasons.

The real collateral is the "condo payment" that you tie into both deals =Credit cards payoff and the private lender payoff. She will try to convince you to pay rent directly to her in both cases but you would be giving up a great deal of leverage. 

 

Beware:

I suspect that the p2p lenders mentioned in another post would secure the loan with a high interest rate and a short term in hopes that they could obtain the property by default. There are so many clauses listed in those contracts that they easily take advantage of people in desperate situations.

 

Psychologically the worst thing you could have done was to let her know that the money was a windfall to the lender.  Women and money are like Pigs and truffles  once they smell it ,they start digging away.

 

Edited May 26, 2019 by Seth1a2a

[Guest]

1 hour ago, Seth1a2a said:

bangkokequity

• Super Member
•  
• Since you are the renter of the condo, form an agreement that all rent payments will go to "B" until the loan is satisfied, and make the sale of the condo contingent on TWO signatures.  The person borrowing, and the person lending.

_____________________________________________________________________

 

Taking it a step further........

 

 It appears that the three of you can setup a payment plan

and a simultaneous guarantee that the loss would be minimized if she failed to perform as agreed.

       Cut up or return all the cards to insure no new debt gets added to the deal.

Calculate the actual amount she will be able to pay each month. 

OP Makes his condo payment directly to the credit card balance or lender only. 

Lending friend pays 2  times the amount borrower actually pays towards the debt (remember, she was going to pay back the loan in installments anyway. ) If she does not pay her share then the deal is off. Sample ....she pays 30,000/m OP 15000/m lender pays 60,000/m

3 months =315000 to credit card plus accumulated interest.  

 

You still have the condo payment as collateral but for a smaller 180000 amount rather than the full 300,000 to collect.  

Next OP pays lender his 15,000/m + she pays her 30,000/m =45,000/m for the next 4 months

to pay back the 180,000 owed the lender.

If she reneges,  she loses 15000 from OP/month till OP pays off his friend the 180000 for the next 12 months. All of this should be spelled out in the contract and witnessed by a neutral party In the event she grows fangs and tries to sue you for non-payment of rent or evict you for other reasons.

The real collateral is the "condo payment" that you tie into both deals =Credit cards payoff and the private lender payoff. She will try to convince you to pay rent directly to her in both cases but you would be giving up a great deal of leverage. 

 

Beware:

I suspect that the p2p lenders mentioned in another post would secure the loan with a high interest rate and a short term in hopes that they could obtain the property by default. There are so many clauses listed in those contracts that they easily take advantage of people in desperate situations.

 

Psychologically the worst thing you could have done was to let her know that the money was a windfall to the lender.  Women and money are like Pigs and truffles  once they smell it ,they start digging away.

 

NAILED IT!   "Psychologically the worst thing you could have done was to let her know that the money was a windfall to the lender.  Women and money are like Pigs and truffles  once they smell it ,they start digging away."

[SheungWan]

How much is the house worth, net of mortgage?

[Captain 776]

NEVER.  EVER. DO THIS~!!

 

They will tell u ANYTHING and promise you EVERYTHING........then when they cant repay.........,they could not care less about YOU.

 

YOU are setting yourself up for a problem.

No matter what you have in writing, do not expectanypolice help.........its a civil case, they will not do anything.

 

DO NOT LOAN TO ANYONE~!!!

[Captain 776]

7 hours ago, Mavideol said:

my father taught me......only lend money to a friend if you are ready to loose both

EXCELLENT ADVICE

[Captain 776]

If trust is not an issue......... then there should be no problem having her go to the land office BEFORE you loan the money and put it in your name NOW,.........BEFORE u loan because I have a better chance of getting pregnant than her signing it over to you AFTER.........she cant pay you

[samsensam]

On 5/25/2019 at 6:35 PM, SteveK said:

If someone in Thailand asks me to lend them some money, then I know that one of two arguments will ensue:

 

1. I don't lend the money, and have to deal with an angry Thai person. No money lost.

 

2. I lend the money, then when I ask for it back, I have to deal with an angry Thai person. The money I loaned is lost.

 

Please, stick to number one, keep your money and your sanity.

 

Never, ever lend money to people in Thailand, unless you are willing to write the sum off and forget about ever collecting it. Nothing against the Thais, they just have a different attitude to money, loans, and paying people back (ie they always try to avoid paying the money back, especially if an idiot farang was the one who loaned it).

 

 

 

my thai friends, in the main, have jobs and are financially secure, they are from time to time pestered, and i mean really pestered, by friends and/or family to lend them money. sometimes they resist sometimes they dont. of those who 'lend' money very few ever see the money again and many of them suffer stress from the reluctance of the borrower to repay the money or even engage in dialogue about repayment. sadly this is the culture here.

Edited May 26, 2019 by samsensam
clarity

[me4175]

17 hours ago, ThomasThBKK said:

Hey op,

 

to get this topic back on track, did you thing about p2p loans before? 

There are platforms that you can use todo that like: 

https://satangdee.com/en/

https://www.beehiveasia.co.th/

 

 

They are licensed by the BoT and take care of most legal pain, for such a small loan it's worth considering. 

 

This is however all quite new here and just recenetly regulated: https://canchamthailand.org/bank-thailand-issues-first-peer-peer-lending-regulations/

 

 

Do you check your links before posting? Satangdee is not operating yet, without any indication if and when they ever will. And Beehive is lending money to businesses, not private borrowers.

[metempsychotic]

20 hours ago, AlexRich said:

Everything is relative ... what percentage of an average Thais take home pay does it represent? Quite a bit I’d imagine.

I don't know, please define average Thai. 

 

It's a term often bandied about. 

 

The average Thai in my acquaintance has family support, a home, a car, a career or business,  a degree etc. 

 

For that matter, I don't see anywhere in the op that nationality is specified. 

[XenZen]

hahahahahahhahahhahahhahaha

 

suckers everywhere, love these threads.   Yes, loan them as much as possible!!!  Maybe 300,000 plus another 400,000 for spending money and another 1,000,000 for a health fund.   Have them sign and pinky swear on everything, and then check their facebook for pictures of new stuff and when they plan on leaving the country.  

 

if you have money, lie.   if they know you have money, and talk about money, never talk with them again.  thais call me stingy, so i ask them for money, and NEVER has anyone gave me money.  so then i call them stingy and we laugh.  but my job is not to give people money.  i've given away over 5,000 baht worth of clothes, and that's OK.  plus maybe 3,000 in other stuff.  i don't care if that is a lot or not, i don't live by your approval.  

[sking51]

I'd like to ask about the legality of foreigners lending money to Thai nationals...can residents and/or tourists do so? 

[zhounan]

load create depo so stress, pressure, ill. In this particularly period of society I wouldn't give / receive a loan, to risk to NOT repay is high

[JaiLai]

load create depo so stress, pressure, ill. In this particularly period of society I wouldn't give / receive a loan, to risk to NOT repay is high

Is this written in code?

I’ve no idea what it means


Sent from my iPhone using Thailand Forum - Thaivisa mobile app