Loaning Out Money.

[samsiam]

Tricky balancing act I imagine.

It would be if you are not getting the principle back to restock or reinvest.

[aneliane]

Question : Do Thai banks lend money to farangs ?

[Heng]

Of course they do. And so do private lenders.

As for the former, it's certainly not as easy to get a loan as a local (like most places in the world), but it can be done.

[simple1]

Tricky balancing act I imagine.

It would be if you are not getting the principle back to restock or reinvest.

Sure, but many black money loans are charged out at least 10% interest a month, so a very profitable business for the money lender. In my Moo Ban a Thai lady, is wealthy, comparitvely speaking, from this business model. Keeps gold as colateral

[apetley]

My wife loans out money at 1% a month. Never been let down on repayment.

She also contributes to a local loan scheme that loans out secured money. Works out at about 20% annual.

Posted with Thaivisa App http://apps.thaivisa.com

[samsiam]

Tricky balancing act I imagine.

It would be if you are not getting the principle back to restock or reinvest.

Sure, but many black money loans are charged out at least 10% interest a month, so a very profitable business for the money lender. In my Moo Ban a Thai lady, is wealthy, comparitvely speaking, from this business model. Keeps gold as colateral

At the expense of the people that cannot usually afford it....just getting deeper and deeper.....seriously, only low lifes would charge out at 10/15% per month to the poor.....incredible.

[DLock]

My wife loans out money at 1% a month. Never been let down on repayment.

She also contributes to a local loan scheme that loans out secured money. Works out at about 20% annual.

Posted with Thaivisa App http://apps.thaivisa.com

My wife also loans out at 1% per month for short term loans, but always with collateral.

This year has been quite busy with many rice farmers having given their crop to the Government, but still yet to be paid and no firm date. Many have loans on farm equipment and land rent that needs to be paid.

She has had a few defaults, but overall, she makes reasonable money and gives people an option over the crazy rates some lenders offer...which has it's own dangers.

There are ways to lend legitimately, with legal documents and collateral, but the legal rate is a maximum of 15% per annum.

[BigJohnnyBKK]

Question : Do Thai banks lend money to farangs ?

Based on a long-term stable work permit at a good salary, and rock-solid collateral - maybe.

I know plenty of expats here arranged their property mortgage through Singapore banks, apparently much easier to deal with.

My wife loans out money at 1% a month. Never been let down on repayment.

She also contributes to a local loan scheme that loans out secured money. Works out at about 20% annual.

That would be considered a charity/friend's rate, very generous.

Sure, but many black money loans are charged out at least 10% interest a month, so a very profitable business for the money lender. In my Moo Ban a Thai lady, is wealthy, comparitvely speaking, from this business model. Keeps gold as colateral

At the expense of the people that cannot usually afford it....just getting deeper and deeper.....seriously, only low lifes would charge out at 10/15% per month to the poor.....incredible.

Yes only truly desperate would borrow at 10%.

I see mostly 4-6% as the norm.

But agree that's usurious.

Note that it's not actually legal to take possession of the property in most cases, but the borrower usually doesn't know that or if they did wouldn't dare use something as abstract as "the law" against their higher-level benefactor whose trust they've betrayed.

[simple1]

I agree the interest rate is cruel and in fact illegal. However the borrower can say Y/N. On the downsideas you know the poorer Thais usually live day to day and a problem occurs do not have access to financial institutions as no pay slips etc so faced with really tough decisions if the bread winner gets sick/accident, losses work and so on. .

[David48]

Hummm ... shades of lending-to-farmers

Interesting what people will pay for money.

Not for me though as I'd be worried that the debtor would get the smarts and contact Immigration and complain that what I was doing was considered a business and the Immigration Dept. would ask to see my (non-existent) work permit.

[wana]

Hummm ... shades of lending-to-farmers

Interesting what people will pay for money.

Not for me though as I'd be worried that the debtor would get the smarts and contact Immigration and complain that what I was doing was considered a business and the Immigration Dept. would ask to see my (non-existent) work permit.

thats why most farang backed enterprises are "managed " by a thai wife /gf / friend etc

the farang can take a back seat and collect the lions share of the profits at the end of the month in an envelope under the table

( thai style )

[BigJohnnyBKK]

thats why most farang backed enterprises are "managed " by a thai wife /gf / friend etc

the farang can take a back seat and collect the lions share of the profits at the end of the month in an envelope under the table

( thai style )

Actually I'd be nervous about my wife engaging in such activity even if it had nothing to do with me, since many would assume exactly what you're talking about.

If you were to actually do this - your wife just the front man for your loansharking business - I would say you'd be very right to be worried, and not just about the police regarding minor paperwork issues, but their much more dangerous friends wrt your physical health.

The most horrible mishaps here come IMO from foreigners thinking they can freely compete with local criminal networks.

Edited May 14, 2012 by BigJohnnyBKK

[aneliane]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

[nocturn]

The OP misses the point that a lot of the "loan business" in Thailand is structured to place the debtor in a position where they cannot repay the debt and therefore must handover the security - land, or buildings.

It is by these means that Thailand's land is being leached out of the hands of cash poor, land rich ethnic Thais into the hands of their recently arrived 'countrymen' from that country to thd North.

That point is not missed at all...I think you seem to miss the point of my point.

i have read the op several times and cannot see that you have made anything more than an observation. I see no questions, no conclusions and no point.

SO what is it i am missing?

[canman]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

Aneliane, I have known expats on work permits who have obtained bank loans from Thai banks for car purchases and they required a Thai to be guarantor for the first loan. Apparently this was only required for the first loan, so for example when trading in the car 3-4 years later the next loan did not require the guarantor.

[YipYipYa123]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

Its not much money but depends on your status and visa in Thailand

If you have a good job or lengthy work permit or even a Thai person of some value to go guarantour you will get it like your boss

I have often loaned money to staff to buy motorbikes etc but the green book remains with

Me until they paid it in full (I take 5 -10k a month ) deduct from their salary before they get their hands on it

I don't charge them interest ,But I use their collective buying power to negotiate lower prices

With the Honda /Yamaha dealers than they would have paid and after 12 months when its paid up I sign the transfer papers and its theirs to

Sell or whatever

[aneliane]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

Its not much money but depends on your status and visa in Thailand

If you have a good job or lengthy work permit or even a Thai person of some value to go guarantour you will get it like your boss

I have often loaned money to staff to buy motorbikes etc but the green book remains with

Me until they paid it in full (I take 5 -10k a month ) deduct from their salary before they get their hands on it

I don't charge them interest ,But I use their collective buying power to negotiate lower prices

With the Honda /Yamaha dealers than they would have paid and after 12 months when its paid up I sign the transfer papers and its theirs to

Sell or whatever

mmmhI have a student visa, I want to study online next year

they might not like me

[wana]

thats why most farang backed enterprises are "managed " by a thai wife /gf / friend etc

the farang can take a back seat and collect the lions share of the profits at the end of the month in an envelope under the table

( thai style )

Actually I'd be nervous about my wife engaging in such activity even if it had nothing to do with me, since many would assume exactly what you're talking about.

If you were to actually do this - your wife just the front man for your loansharking business - I would say you'd be very right to be worried, and not just about the police regarding minor paperwork issues, but their much more dangerous friends wrt your physical health.

The most horrible mishaps here come IMO from foreigners thinking they can freely compete with local criminal networks.

i wasnt sugesting anyone take up loansharking as a business

but i do know many businesses where farang cash was invested to set it up

but of course ,a thai person has to be at the counter to meet and greet and smile and deal with any problems that may occur (normal businesses like food and shops etc )

if its a decent set up ,the farang can take 80% and the only risk is the money outlayed to get it started

a trustworthy thai man is worth his weight in gold in this aspect ,since he will know the score and rarely would locals question his

financing but a woman with a farang husband will be a softer target

[BigJohnnyBKK]

Only problem doing it that way is you're limited to the profits from the cash flow, too risky IMO for anything requiring a lot of cash up front. Either way heck of a lot of faith in the Thais involved, no matter how good your relationships now things can always go south down the road.

Plus, you probably won't be able to extract much out selling it later on as a business, where doing it legally you could, just a higher up-front expense.

Edited May 14, 2012 by BigJohnnyBKK

[wana]

Only problem doing it that way is you're limited to the profits from the cash flow, too risky IMO for anything requiring a lot of cash up front. Either way heck of a lot of faith in the Thais involved, no matter how good your relationships now things can always go south down the road.

Plus, you probably won't be able to extract much out selling it later on as a business, where doing it legally you could, just a higher up-front expense.

the term a "lot of cash" is quite relative and differs greatly between Thailand and FarangLand

a few hundred dollars and a good thai person and you can be profitable within days

sometimes these businesses pay Extremely well for what you actually invest

of course ,youre not ever going to have the security of a work permit or a business to sell later on ,but neither are you ever going to have to do any work

or pay any tax etc so i think the benefits are quite rewarding in the short term

much better return than leaving your money in a bank but as always ,never play with more than you can afford to lose

and you cant go far wrong

[samsiam]

Gambling thai style...

[brit1984]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

Would 399k suffice?... http://www.thaivisa.com/forum/topic/555288-ting-tong-banking-in-thaialnd/

[wana]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

Would 399k suffice?... http://www.thaivisa....ng-in-thaialnd/

he had a work permit and a proper salary to get that ,i doubt they would give it to a student in her position

[brit1984]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

Would 399k suffice?... http://www.thaivisa....ng-in-thaialnd/

he had a work permit and a proper salary to get that ,i doubt they would give it to a student in her position

I meant she could take him up on his open offer to join him for drinks; one thing leads to another...

[wana]

I "only" need 400 000 thb but I have no guaranties, is it far fetched ?

(i mean for a regular bank)

Would 399k suffice?... http://www.thaivisa....ng-in-thaialnd/

he had a work permit and a proper salary to get that ,i doubt they would give it to a student in her position

I meant she could take him up on his open offer to join him for drinks; one thing leads to another...

i think she bats for the other team though ........

[drdredd2012]

Does anyone know a private lender

[rene123]

One thing I was taught a long time ago and I've tried to stick with, and that was "Never a lender or a borrower be."

Anything I lend I consider a gift. That way I am not disappointed when it doesn't come back. I would rather lose some money than lose a friend because they couldn't pay back a loan.

If I need to borrow I do it from the bank.

[The Pundit]

Dunno ^^^, but our local chap does secured loans at 2% per month up to 60% of the value of the security (land usually).

We actually used him once (shock, horror!) as bridging finance to get the restaurant going again after the floods (whilst I awaited payment from a major international company with a deserved reputation for tardiness).

I know someone that does secured loans also,it's called The Bank!

[Heng]

One thing I was taught a long time ago and I've tried to stick with, and that was "Never a lender or a borrower be."

At our house it has always been "Never a borrower but a lender be."