Giving A Loan And Using The Chanote As Collateral

[happyjune]

If lending money and using a Chanote for collateral, I have some questions.

Clearly just having the Chonote is not enough, if you were forced to cash it in what documents would have to be pre-signed by the owner that is taking out the loan?

It appears, you are much better putting the loan on the back of the Chanote, I read on TV there is a 1% tax for the value of the loan, is this correct?

Can a foreigner (non Thai national) actually 'cash' in a Chanote if the person borrowing defaults as that would mean owning land wouldn't, even if the loan is on the back of Chanote ?

To give a loan, do you have to be a financial institution?

Are you opening your self up to have to pay tax on the interest which I would expect, then a work permit as it would be working.

What if it is a zero % interest loan, hence no income. Just using the back of the chonte for security of the loan.

I can see the suggestion, opening a can of worms.

Any thoughts would be good thanks.

Edited June 19, 2011 by happyjune

[PatOngo]

Happyjune,if it is yourself considering lending money taking a chanote for collateral,in time you will become Sorryjune.Have the borrower take the chanote to a bank to procure the loan.

[sulasno]

If lending money and using a Chanote for collateral, I have some questions.

Clearly just having the Chonote is not enough, if you were forced to cash it in what documents would have to be pre-signed by the owner that is taking out the loan?

You need a loan agreement with witnesses with clear terms and conditions if the borrower defaults

It appears, you are much better putting the loan on the back of the Chanote, I read on TV there is a 1% tax for the value of the loan, is this correct?

You can register the loan at the local land office

Can a foreigner (non Thai national) actually 'cash' in a Chanote if the person borrowing defaults as that would mean owning land wouldn't, even if the loan is on the back of Chanote ?

You can't

To give a loan, do you have to be a financial institution?

No if it is a personal loan and not charging more than 15% interest pa

Are you opening your self up to have to pay tax on the interest which I would expect, then a work permit as it would be working.

What if it is a zero % interest loan, hence no income. Just using the back of the chonte for security of the loan.

I can see the suggestion, opening a can of worms.

Any thoughts would be good thanks.

best not to be directly involved in providing the loan

Edited June 19, 2011 by sulasno

[12DrinkMore]

Don't lend money to "help a friend". You will lose that friend and the money.

And never lend money that you can't afford to walk away from and still smile.

[happyjune]

Ok, I agree with all said above, (didn't know about the 15% cap through) I was asking for two reasons, after a recent discussion with a friend who has a very misguided understanding of the subject, well I give up trying to give him a nudge to get better advice, secondly for my own knowledge. I have no intention of playing the loans game.

One thing I would like to know about through, for future property that my wife buys, I would like to put the odds in my favor should the shit hit the fan and we separate.

I am happy with our home being in wifies name, if push comes to shove I could walk away. I would wan the kids to have a solid roof over their heads anyway. But say we wanted to buy next door for a good price, being the major contributor financially in the relationship, I would like some financial security, well point the odds in my favor anyway !!!!! TIT

Not really interested in an unfruct, as I don't really want to live there, a 30 year lease would be handy that I can "sell" or sub lease the lease, it could have business facilities on the land. Can I put a interest free loan to my wife on the Chanote so at least if there is problems in the future, she can't sell it with out me clearing it in the lands office? Just thinking out loud !!!!