lending out money in thailand

[benalibina]

We all hear/heard many stories that we in thailand should not lend out money because of the foreigners and thais will never pay it back. Thus better give it instead of lending it.

Personally i have lend out money twice in my years there to people who needed it.

When i told that i lended out money to a thai woman, yes bg, people responded that i would never get it back. I had a bet about it with a guy. After a short while, 3 months, the lady in question rang me and met me to pay the 5.000 bth back.

Another 1 was with a foreign friend of mine who i lended a very substantial amount.

He rang me when his house was sold and transferred the money straight into my bankaccount.

So on 2 occasions i had no problem.

What are your experiences ?

[MJP]

I don't lend, but I have given if a friend is in crisis.

I never consider it a loan. It's a gift, that should it ever be paid back would be fine, but not really a big deal.

Some have been very substantial sums and no I'm not rich. I don't do it now I have children, they come first.

[GuestHouse]

I've had friends in desperate need (Thai and foreign).

I've always given the money as a gift to help out with no expectation that it should be returned.

It has always, with one exception been returned.

The one time it was not returned my friend died of HIV AIDS - I don't miss the money.

[HardenedSoul]

I lent money to a Thai woman - only 2,000, Forgot all about it. A year later, she called me and brought it round to my apartment plus 500 for taking so long.

Nice

[NanLaew]

I have loaned to friends and even casual acquaintances and repayment has never been an issue; only one outstanding right now (you reading this JJ??!!).

However, relatives seem to have a different take on loans.

[stoneyboy]

Avoid lending money to fellow expats at all costs and you will be ok.

Sent from my iPad using Thaivisa Connect Thailand mobile app

[rak sa_ngop]

Looks like I need to get myself some new friends.

I can honestly say that in the 20 plus years I have live in Asia (not just Thailand) I have only been repaid twice by Asians out maybe 10 or more loans. Of course some of these smaller loans were more like gifts, but some large ones are still out there on a promise.

Have I learned my lesson?

No, I still fall the sob story. I think that sharing part of your wealth with people in need comes with the territory of living in Asia.

[ToddWeston]

Secretly a few years ago I lent my BIL 30K, no questions asked paid back within a few months, I said just deposit it into the Thai account, a few weeks later I checked online.

Something strange was happening it almost looked like double deposit credits, I had to fess up and say I lent money to the BIL, I was then TOLD so did I, to my sister, exactly 30k, so the BIL got 30 and the SIL got 30 both paid back, the 4 of us had no clue what anyone else was doing.

We smiled when we learnt they'd both bought each other great gifts for their 20th anniversary.

I lent my sister a hefty sum ONCE.........but she named on of her brats after me so I guess that's as good as it gets

[apetley]

Lent 50k to sister in law to buy a car. Got it back.

Lent 300k to wifeys friend to buy some cows. Got it back 4 months later.

[bangkokheat]

you must have met some decent people, after 2 years here it has finally sunk in that money is the root of all evil, I would now never lend money again

[johnlandy]

Well my experiences have been with only one exception bad. Had money repaid by a Thai once and once only out of about 15-20 loans extended. Thais (in general) cannot manage money hence whilst

they might be sincere in saying "I" will pay it back, never hold your breath.

In the case of 'round eyes' (Caucasians) I have lent money to friends and without exception it has always been repaid. But I wouldn't lend to a dropkick I had just met in a bar, that would be asking for

trouble.

[Morden]

If you want to lend money not expecting it to be repaid, that's fine. If you want repayment, you must treat the deal as a business contract and do it the right way. That means having a legal contract, perhaps between the borrower and your wife to avoid any of the poor Thai- rich farang nonsense. You must also have collateral. If you don't do that and expect repayment, then you can't complain if you don't get it. Same the world over, I expect.

[Card]

Looks like I need to get myself some new friends.

I can honestly say that in the 20 plus years I have live in Asia (not just Thailand) I have only been repaid twice by Asians out maybe 10 or more loans. Of course some of these smaller loans were more like gifts, but some large ones are still out there on a promise.

Have I learned my lesson?

No, I still fall the sob story. I think that sharing part of your wealth with people in need comes with the territory of living in Asia.

Maybe you should have given these poor people a chance to repay you in other ways. It may not matter to you but I would look on it as a way for them to redeem their pride in themselves instead of just accepting a gift or loan for nothing. Unless they don't care about repaying you that is.

[jacko45k]

No experiences whatsoever, and I plan on keeping that way, and suggest others do too!

[loong]

Most of the loans that I have made have been repaid, but it nearly always involves hassle.

Very few have made repayment instalments on time as promised and I was sick of being painted as the bad guy for expecting to be repaid.

I still make the occasional small loan to people that have repaid previous loans on time without being reminded.

[h90]

Well often it is not paid back.

If 10 times money is lent out, 8 times it is paid back and 2 times it is not paid back, than you have 2 stories about money not paid back.

And of course no story of everything OK.

[siamjimi]

As with any nationality lending of money is a close decision. I was told at an early age not to lend money and expect it back - you best be ready NOT to acquire the money back –and- if you are financially dependent upon the borrowed money and its return DO NOT GIVE IT - that simple.

I leant money to a western friend in Pattaya - let’s call him "Dr. P" a supposed actor friend that has yet to pay it back for over 10 months and is squirming his way to finding exceptions or "inferred" reasons why he should not pay it back. It was a gentleman’s agreement and specifically a personal loan that was not tied to any other purported business dealings we had – I made this quite clear at the time I transferred the money to him.

The same month which I am referring to I had a Thai friend borrow money and never paid it back to date as well - so its really not about Thai other than about the individual yu trusted and money always spoils relationships in my opinion.

Also be careful of the expats here in Thailand - they are worst about scamming other expats out of money. jus sayin.........

[siamjimi]

As with any nationality lending of money is a close decision. I was told at an early age not to lend money and expect it back - you best be ready NOT to acquire the money back –and- if you are financially dependent upon the borrowed money and its return DO NOT GIVE IT - that simple.

I leant money to a western friend in Pattaya - let’s call him "Dr. P" a supposed actor friend that has yet to pay it back for over 10 months and is squirming his way to finding exceptions or "inferred" reasons why he should not pay it back. It was a gentleman’s agreement and specifically a personal loan that was not tied to any other purported business dealings we had – I made this quite clear at the time I transferred the money to him.

The same month which I am referring to I had a Thai friend borrow money and never paid it back to date as well - so its really not about Thai other than about the individual yu trusted and money always spoils relationships in my opinion.

Also be careful of the expats here in Thailand - they are worst about scamming other expats out of money. jus sayin.........

BTW - I have close friends which I have borrowed & "vice versa" VERY large sums of money and have been paid back timely by myself and my friends. These are of course REAL life-long friends.

The example I have given you above is certainly the exception and a good example of a deadbeat version of a friend - no longer a friend due to the misgivings of a personal loan. Money and friendship does not mix well.

[Jasun]

"I had a bet about it with a guy. After a short while, 3 months, the lady in question rang me and met me to pay the 5.000 bth back."

I'm wondering, did he honour the bet?

I've only lent money twice, and had it returned twice, albiet so long after i'd forgotten I'd lent the money in the first place. But they were more micro loans, i'd think twice about giving anyone anything over 20K baht.

[mca]

On occasion my wife's staff come to her with some sob story and ask to "borrow" some money. Nothing major, usually 2 or 3 thousand baht. She usually gives them half what they requested, tells them not to bother paying it back but makes sure they know it's the first and last time the'll get anything.

One thing she will never do is guarantee a loan for anybody. When we worked together there were some real horror stories about members of staff getting royally stitched up by family members and supposed best lifelong buddies after guaranteeing a loan. Asking my wife to guarantee a loan would be about as much of a waste of time as anything I can possibly think of.

[h90]

On occasion my wife's staff come to her with some sob story and ask to "borrow" some money. Nothing major, usually 2 or 3 thousand baht. She usually gives them half what they requested, tells them not to bother paying it back but makes sure they know it's the first and last time the'll get anything.

One thing she will never do is guarantee a loan for anybody. When we worked together there were some real horror stories about members of staff getting royally stitched up by family members and supposed best lifelong buddies after guaranteeing a loan. Asking my wife to guarantee a loan would be about as much of a waste of time as anything I can possibly think of.

For staff it is easy, just deduct it from the next salary. They call it here "money in advance"

[mca]

On occasion my wife's staff come to her with some sob story and ask to "borrow" some money. Nothing major, usually 2 or 3 thousand baht. She usually gives them half what they requested, tells them not to bother paying it back but makes sure they know it's the first and last time the'll get anything.

One thing she will never do is guarantee a loan for anybody. When we worked together there were some real horror stories about members of staff getting royally stitched up by family members and supposed best lifelong buddies after guaranteeing a loan. Asking my wife to guarantee a loan would be about as much of a waste of time as anything I can possibly think of.

For staff it is easy, just deduct it from the next salary. They call it here "money in advance"

She doesn't own the company. These are the people who work under her.

[AdamRich]

There are some lucky guys in here. My girlfriend just told me that in 2008 she co-signed a loan for 400K for a friend who was in trouble. Well a couple of weeks ago the lender contacted my girlfriend about paying the money back because her good friend has skipped town. She said some way her dad got a lawyer to get her out of it though.

[captspectre]

never, ever lend money to a Thai! you will probably never get it back as the Thai's seem to think that all foreigners are rich and can afford to lose it anyway! however if you don't believe that, then BE MY GUEST!

[chrisrazz]

Avoid if you wish to maintain your relationships, though you will be the bad guy for declining the chance to help a friend. You will be the bad guy when you ask for it back. A no win situation.

About 12 years ago I lent BIL 200k. He had a car loan and was developing a business, I explained the money should be used to pay off half the car loan and the rest used to for the business. He went off and paid off the whole car loan. The business went well, he worked hard for a while and I got about 50k back in the first year. The business was retail, having exhausted his stock and with no idea of managing and monitoring the income and expenditure he was unable to restock his business by securring better prices for bulk wholesale purchases. Subsequently he inherited a tidy sum of money and property even by western standards. He and his family, living on the assumption that they are too rich to bother working have spunked all but the last 4 mil with absolutely nothing to show for it. The last 4 mil is locked in a property they are trying to sell, I have been promised pay back when they sell. They have borrowed from the bank against this property and have done absolutely nothing about repayment, now they are around again trying to borrow money to pay back this loan as the interest is accruing.

My wife has lent smaller amounts, there is always a problem in getting the money back, it is never on time or when they say it will be. Over the years we have had many people arrive out of nowhere looking to borrow, I've been bitten too many times and have since invested a lot of time in promoting the idea that I am a poor foreigner and have no money (I don't give a sh1t what people say or think about me), so don't even ask me. So, my advice is simple, do not get involved in the problems of others, either financially or emotionally, as these problems will naturally transfer to you. This may be selfish, yet there are other ways to help people if they are prepared to listen, like my BIL, who in posession of my money chose his own advice and now we both have a problem.

[ryldar]

Hmmm … interesting responses … as a rule I don't lend or give money due to budget concerns, however, I have lent money to two Thai friends … the one has repaid almost the entire loan (very trustworthy) & the other I forgave the loan due to his circumstance. I guess it's like anywhere else, whether to loan or gift depends on the character of the person at the receiving end.

[shaurene]

Looks like I need to get myself some new friends.

I can honestly say that in the 20 plus years I have live in Asia (not just Thailand) I have only been repaid twice by Asians out maybe 10 or more loans. Of course some of these smaller loans were more like gifts, but some large ones are still out there on a promise.

Have I learned my lesson?

No, I still fall the sob story. I think that sharing part of your wealth with people in need comes with the territory of living in Asia.

I am the same, leant money out to wife's family, 70k still waiting, not holding my breath. The world famous saying, Never lend money to friends or family.

[DGIE]

MJP said:

I don't lend, but I have given if a friend is in crisis.

I never consider it a loan. It's a gift, that should it ever be paid back would be fine, but not really a big deal.

Some have been very substantial sums and no I'm not rich. I don't do it now I have children, they come first.

You must be a very good person.

I hope I am one of your friends but I don't want to experience crisis.

[gvan]

never got it back, one a farang from my own country. I'm done lending!

[DGIE]

It was my business to lend money with a low interest. I have the Trust Receipt to show that they borrowed money from me.

Many people came to me. They were very nice. When paying back they were very bad.

Some , in front of police officer, promised to pay in a certain month but they were no where to be found till now.

One is now in Saudi Arabia working. He borrowed more than 100,000 Baht. of course he receives salary there, everybody knows that. But he has no intention to pay. He should have sent even 2,000 Baht a month and that's OK for me. but none at all. His Name is <snip>