Why is it so hard to talk to a Thai bank about a loan?

[jakow]

My wife (Thai) wants to know her options for getting a home loan. I told her to just call some banks and that I'm sure they'd be very willing to discuss her options, since that is how it is in Western countries and banking seems to be similar in Thailand. But when she calls, they tell her that before they will discuss anything she needs to know exactly which property she wants to buy and gets some papers from the owner. She said she doesn't know yet, because she doesn't know what amount of loan she could qualify for based on salary, assets, down payment, etc., but they won't discuss anything until she can show them the property she wants to buy and gets some type of documentation from the land owner. Is it not possible in Thailand to just call up a bank and talk to a loan "specialist" who can help you understand your options and requirements? Or is she maybe just calling the wrong number or asking the wrong things? It seems crazy that they wouldn't provide some basic loan advice.

[Bob A Kneale]

If your wife made the effort to go to the banks in person, rather than expecting them to provide lending policy information over the phone about a hypothetical proposal, she'd have more credibility and the banks would be much more accommodating.

Edited June 6, 2020 by Bob A Kneale

[jakow]

6 minutes ago, Bob A Kneale said:

If your wife made the effort to go to the banks in person, rather than expecting them to provide lending policy information over the phone about a hypothetical proposal, she'd have more credibility and the banks would be much more accommodating.

Every time we've gone into a bank they never seem to know what they're talking about. One lady even wrote down some different options for us when the board right behind her had better terms. I guess we just need to try different branches until we find a good one.

Edited June 6, 2020 by jakow

[ProbPossConf]

The banks want you to first open a credit card account and then buy insurance from them, but it is not a guarantee they will give you a loan.

[bwpage3]

It's not like the US where you can get pre-qualified to a certain amount then go house shopping.

[thenewgoo]

15 hours ago, bwpage3 said:

It's not like the US where you can get pre-qualified to a certain amount then go house shopping.

SCB even came house shopping with me. Only to have the loan declined because I am a foreigner. (I guess they didn't notice this when we were all in the car).

[robblok]

Long ago with the ex we bought a house on her name and loan in her name. Banks would only give out loans after they had seen the property. They wanted to be sure nothing was bought at an inflated price because then the collateral does not cover the loan well. 

 

Also giving out data on the phone you get a lot of time wasters. 

[DaLa]

Just assume it's a similar process to that adopted by immigration. That is, it depends on the day and the person you speak to. My wife and I have a business with a lot of banking issues and I let her take care of everything.  In the UK I am the customer and I ask questions and they give me straight answers,  Here, I sometimes feel like I'm disturbing their day.

 

If anything I find the system even more of a rip off here than in the UK.  We have just taken a loan and had to pay fees for many items they dreamt up, including life insurance, all for a loan of 15%  on the equity we owned at over 6% interest.

 

I try to avoid banks in the same way I avoid big trucks on the roads.

[gamini]

It was easy many years ago for anybody to get a loan from the bank even without collateral. I remember in about 1990 I just walked into the Bangkok Bank and got a loan for  1

 million baht. But things have changed. So many Thais and foreigners borrowed money and didn't pay back. The foreigners simply just disappeared with no intention of paying the money back I know a few who did just that.  So the banks are being very careful especially where foreigners are involved. But if you have had an account with a Thai bank for long time and you are known to them it is not so difficult.  When I mean a long time I'm talking about 20 or 30 years where they can see that you lived up to all your obligations.  Another thing is not difficult to get a loan if you have a proper job.  

[DJ54]

Look on internet...hopefully it help. See screenshot 

[sawadee1947]

No, it's not difficult if you have assets in Thailand. 

[natway09]

Why would a Thai bank give a Farang a loan longer than his work permit?

[1FinickyOne]

6 minutes ago, natway09 said:

Why would a Thai bank give a Farang a loan longer than his work permit?

its for his Thai wife.... not the farang...

 

and she needs to speak with someone who handles loans, not just any teller... 

[Max69xl]

22 hours ago, ProbPossConf said:

The banks want you to first open a credit card account and then buy insurance from them, but it is not a guarantee they will give you a loan.

What's a credit card account? 

[ProbPossConf]

All Thai banks have their own credit cards and want you to apply for the card and a corresponding bank account to pay the card charges internally within their banking system.  The reason the banks promote their credit card is it establishes you have credit history with the bank which may consider to grant you a loan.

[ericthai]

7 hours ago, gamini said:

It was easy many years ago for anybody to get a loan from the bank even without collateral. I remember in about 1990 I just walked into the Bangkok Bank and got a loan for  1

 million baht. But things have changed. So many Thais and foreigners borrowed money and didn't pay back. The foreigners simply just disappeared with no intention of paying the money back I know a few who did just that.  So the banks are being very careful especially where foreigners are involved. But if you have had an account with a Thai bank for long time and you are known to them it is not so difficult.  When I mean a long time I'm talking about 20 or 30 years where they can see that you lived up to all your obligations.  Another thing is not difficult to get a loan if you have a proper job.  

yeah, that all changed in 97 after the financial crash.

I remember several of my Thai friends that owned companies in the 90's said they would go to the bank to get a business loan for 2-3 million and walk of out of the bank with a loan of 5-6 million. The people at the bank would actually push them to take a bigger loan. 

[thenewgoo]

2 hours ago, ProbPossConf said:

All Thai banks have their own credit cards and want you to apply for the card and a corresponding bank account to pay the card charges internally within their banking system.  The reason the banks promote their credit card is it establishes you have credit history with the bank which may consider to grant you a loan.

It is a false prophecy - if you are talking about a credit rating (as it is called in my country) it means jacksheet for a foreigner here. I had a perfect credit rating here in Thailand through a car purchase which wasn't taken into consideration for unexplained reasons other than not being Thai.  

I have been with my bank for 14 years with a steady job earning above Thai average salaries. No cigar.

Don't go thinking a branch manager of a bank has any say (or indeed any clue) in your loan application - it is done by HQ - they don't know you. 

 

Foreigners can't get a loan for a house in Thailand. Fullstop. 

 

A few sour grapes about the experience admittedly.

 

 

[cmrichsw]

On 6/6/2020 at 2:37 PM, jakow said:

Every time we've gone into a bank they never seem to know what they're talking about. One lady even wrote down some different options for us when the board right behind her had better terms. I guess we just need to try different branches until we find a good one.

Discrimination & double pricing are a big part of Thai culture. Unless you show your face & your credentials you don't have much of a chance. Sorry been here a long time that is the way it is, they like the power over you especially if you are a foreigner.  

[RocketDog]

I'll take a wild guess and say that the banks haven't had good experiences with loans to Thai or farang borrowers. 

I see posts regularly on TVF about bad experiences with loans. Why would the banks' experience be any different? 

[ProbPossConf]

I

10 hours ago, thenewgoo said:

It is a false prophecy - if you are talking about a credit rating (as it is called in my country) it means jacksheet for a foreigner here.

Totally agree.

[AgMech Cowboy]

On 6/6/2020 at 1:53 PM, jakow said:

Is it not possible in Thailand to just call up a bank and talk to a loan "specialist" who can help you understand your options and requirements?

No, it's not possible to call. The loan officers here are a pretty busy bunch of people. They 'schedule' appointments, at least that's what we encountered 15 yrs ago at SCB. Mind you we didn't go fishing for loan amount capability. Also, in our experience, you don't run around trying different branches. You need to go to the big offices of the bank you wish to consider (in Bangkok, that's SCB's Ratchadapisek office or Kasikorn has 2-3 big office buildings, as do the other banks). Those branches in the shopping centers and in the village, won't be able to help you other than the way the one 'officer' suggested.

[AgMech Cowboy]

11 hours ago, ericthai said:

yeah, that all changed in 97 after the financial crash.

I remember several of my Thai friends that owned companies in the 90's said they would go to the bank to get a business loan for 2-3 million and walk of out of the bank with a loan of 5-6 million. The people at the bank would actually push them to take a bigger loan. 

Very true. (and it was mostly Thai's who fortified their loan(s) or declared bankruptcy.) 

[Kurtf]

Loans in general are much more difficult to obtain than in Western countries for one simple reason. Thais often just walk away from their debt obligations. The banks then get stuck with some piece of property they really don't want.

[jakow]

2 hours ago, AgMech Cowboy said:

No, it's not possible to call. The loan officers here are a pretty busy bunch of people. They 'schedule' appointments, at least that's what we encountered 15 yrs ago at SCB. Mind you we didn't go fishing for loan amount capability. Also, in our experience, you don't run around trying different branches. You need to go to the big offices of the bank you wish to consider (in Bangkok, that's SCB's Ratchadapisek office or Kasikorn has 2-3 big office buildings, as do the other banks). Those branches in the shopping centers and in the village, won't be able to help you other than the way the one 'officer' suggested.

Thanks, very helpful! I suppose any larger province (e.g. Pattaya, Hua Hin) should have a large enough branch to get some good advice?

[thailand49]

Here is the problem as I see it " Banking in Thailand is similar to the West "  it isn't!

[Mattd]

13 hours ago, thenewgoo said:

Foreigners can't get a loan for a house in Thailand. Fullstop. 

 

A few sour grapes about the experience admittedly.

Absolutely correct, the law prohibits this, how were you proposing to put the land in to your name as a foreigner?

[saakura]

1 minute ago, thailand49 said:

Here is the problem as I see it " Banking in Thailand is similar to the West "  it isn't!

It is far better, in my experience of 30 years dealing with Kasikornbank (from their Thai Farmer's Bank days) and TMB (from their Thai Military Bank days).

[thailand49]

2 minutes ago, saakura said:

It is far better, in my experience of 30 years dealing with Kasikornbank (from their Thai Farmer's Bank days) and TMB (from their Thai Military Bank days).

That is good for you but I see it different from my experience. Example when you open a account like in Chiang Mai and have to go to that branch in CM to close there is a problem with that. I once got a cashier check back from AIA insurance they told me when I went to the closes one to deposit it into my account they told me that it could only be done at the branch I opened the account.

 

Recently just curious I wanted to buy another condo for investment but right now I didn't want to take out a lump sum and purchase because I was using the account for my Retirement Extension so I had a bright idea and it wasn't anything to do with the interest etc so I walked into Bangkok bank and ask the loan officer my idea told her can I get a loan my Thai wife will apply for the loan but first I would buy the property outright then obtain the loan for the same amount and place it back into our account and the bank will hold the deed?

 

She was confused said she never heard of such a thing in Thailand yet I've done it a few times in the States very similar creative financing?  Not better but happy for you! 

[ivor bigun]

On 6/6/2020 at 9:06 PM, bwpage3 said:

It's not like the US where you can get pre-qualified to a certain amount then go house shopping.

same in the UK

[thenewgoo]

34 minutes ago, Mattd said:

Absolutely correct, the law prohibits this, how were you proposing to put the land in to your name as a foreigner?

I wasn't - it was to be in my wife's name (Thai) - only the loan.