Financing Options in Thailand

[cmth]

From my understanding is is difficult to impossible for a foreigner to finance anything here in Thailand. I have a few questions on how Thai nationals qualify for financing a purchase. First of all, how is credit worthiness determined here? Is there a credit reporting agency similar to the ones in the US? How are available funds and income verified? Are there different requirements based on the amount financed? For example, say you wanted to finance a 50,000 baht motorbike, what would normally be required? How would it change if you wanted to finance a 500,000 baht automobile? And to move to the big items a 2 million baht house? These things would of course never apply to me, but I am curious as to how it works.

[Bangkokhatter]

Have to provide proof of income, wage slips etc and also need a guarantor, no real difference. Oh and there is an agency that does credit checks and Thai's can build up a good or bad credit rating.

[umbanda]

More or less works like in western countries for Thai citizens.. Foreigners using 50% down payment can qualify in some cases, like with vendors with house financing. Many condominium developers do that, and some second hand cars and motorbikes dealers too.

[casualbiker]

I have had two cars and two bikes on finance .. the first car took a little time. Visits from the bank to my employer etc but the 2nd one with the same lender was no problems (paid off first car before buying second) the bikes were financed directly with the bike shop. Again letters from employer etc then finance .. all times had a Thai cosigner.

[umbanda]

I have had two cars and two bikes on finance .. the first car took a little time. Visits from the bank to my employer etc but the 2nd one with the same lender was no problems (paid off first car before buying second) the bikes were financed directly with the bike shop. Again letters from employer etc then finance .. all times had a Thai cosigner.

If you make the loan payments with direct debit or checks from your bank account, keeping all statements, copies of checks, etc, it is very possible that next time you will not need a cosigner showing that documentation to the lender.

[GuitarKatar]

If these things would of course never apply to you,....... why tire your brains with these matters?

Have a nice day.

[RedCardinal]

I had finance on my car without the need for either a guarantor or employment here in Thailand. I paid >50% down and the process was quick and simple. Bank was Tisco, and this happened back in 2011, so things may be a bit more difficult now.

[Soutpeel]

From my understanding is is difficult to impossible for a foreigner to finance anything here in Thailand.

Well your understanding is not correct then...

[umbanda]

Every bank lender department in every country have a person called "underwriter". That person is the "decision maker". That person use 2 criteria to approve a loan. One is following the bank lending rules, the other is following common sense or gut feelings. If the bank needs to lend, the second criteria may prevail. That second criteria includes age, profession, civil status, length of residence in the country, past credit experience even with cosigners or collateral, down payment, object and used of the lending money, type of visa extension, and also past relationship with the bank, account balance and movement, investments, savings, etc.

If a bank is not interested in lending money, or just will lend for specific amounts or porpoises, are less chances to be approved, even to be considered. Most bank employees work for salary, no commission.

The bank manager is the only one interested in its branch performance. Specially in Thailand, is important to shop..to ask and to insist, with the bank manager..not an employee, and to show all documentation that may be a positive plus for the underwriter....or for the bank manager to act in your behalf.

Is like asking a woman if she will like to go out with you. You need to keep asking. You may get 3 answers....YES.....MAY BE...or ......NO..and the answer may change with time and situation. If you do not ask..the answers always is NO.

Edited February 21, 2015 by umbanda

[Broeno]

I bought a new car in Thailand and financed 65% of the total amount.

I had to show them my income and a regular transfer of money to my Thai account.

Next to that my sister in law was guarantor. All she had to show was handwritten bils of her selling.

I boucht the car in may 2014.

They finally paased the process aldo it looked that they did not know exactly what they where doing because they keeped asking documents i already handed over two times before.

It was tanachart bank in Pattaya.

[cmth]

If these things would of course never apply to you,....... why tire your brains with these matters?

Have a nice day.

I have a lot of free time. Sometimes I just want to know more about the way a country other than my own operates.

[cmth]

From my understanding is is difficult to impossible for a foreigner to finance anything here in Thailand.

Well your understanding is not correct then...

There are a lot of things I don't understand and I'm beginning to think that string theory may be a better starting point than the intricacy's of Thai practices.

[Soutpeel]

From my understanding is is difficult to impossible for a foreigner to finance anything here in Thailand.

Well your understanding is not correct then...

There are a lot of things I don't understand and I'm beginning to think that string theory may be a better starting point than the intricacy's of Thai practices.

when it comes to loans for foreigners via Thai banks think of it this way from a perceived risk profile:

1. The foreigner is neither a permanent resident or citizen of Thailand

2. The vast majority of foreigners don't work in Thailand and bring their money in from overseas

3. Very easy for a foreigner to get on a plane and bugger off at any point

4. Very few foreigners have any form of credit history in Thailand

5. if the foreigner does bail the country, the bank will have very little recourse to recover the money

just on these alone one can kinda see why they are reluctant to make loans to foreigners and this rational would by applied by any bank in the world in similar circumstances.

But the fact remains if as a foreigner in Thailand you do have a credit history, do have a verifiable work history over a few years etc loans can he had quite easily,

with the exception of mortgages on landed properties in their own name for obvious reasons, as a Thai bank is not going to give you money to buy a property, (or the land at least), you can never legally own will they ?

[hdkane]

I'm sorry if i offer a perspective that is different from others who have replied to this post...the banks here are simply corrupt...I suppose that may work in your favor...a number of times I've witnessed poorly qualified Thais get loans for condos, cars, and homes. In each case, they paid the employee to manufacture records and documents that suggest a worthy credit and employment history...it's laughable really...I went with a loan applicant while she and the employee when to an "office" where three Thais were sitting around a table, filling out reciept books and using photoshop to creat invoices...they boxed the paperwork and took them to the bank manager, along with an envelope that held 50,000 baht. From there, the documents were sent to BKK to the underwriter, along with some cash, I presume...she got the loan (3,000,000)...and then defaulted it a couple of years later...I assume this is pretty common here, because if you view any banks website, there is a plethora of foreclosures...I also knew the sister of a senior bank employee...she got a 10,000,000 baht loan, with no questions asked...she defaulted as well, but there have been no attempts by the bank to seize the property purchased...she simply pockets the rental income each month, with no intention of repaying the loan...

[casualbiker]

I'm sorry if i offer a perspective that is different from others who have replied to this post...the banks here are simply corrupt...I suppose that may work in your favor...a number of times I've witnessed poorly qualified Thais get loans for condos, cars, and homes. In each case, they paid the employee to manufacture records and documents that suggest a worthy credit and employment history...it's laughable really...I went with a loan applicant while she and the employee when to an "office" where three Thais were sitting around a table, filling out reciept books and using photoshop to creat invoices...they boxed the paperwork and took them to the bank manager, along with an envelope that held 50,000 baht. From there, the documents were sent to BKK to the underwriter, along with some cash, I presume...she got the loan (3,000,000)...and then defaulted it a couple of years later...I assume this is pretty common here, because if you view any banks website, there is a plethora of foreclosures...I also knew the sister of a senior bank employee...she got a 10,000,000 baht loan, with no questions asked...she defaulted as well, but there have been no attempts by the bank to seize the property purchased...she simply pockets the rental income each month, with no intention of repaying the loan...

You must be a right dodgy geezer to know all these other dodgy geezers

[Muzarella]

I'm sorry if i offer a perspective that is different from others who have replied to this post...the banks here are simply corrupt...I suppose that may work in your favor...a number of times I've witnessed poorly qualified Thais get loans for condos, cars, and homes. In each case, they paid the employee to manufacture records and documents that suggest a worthy credit and employment history...it's laughable really...I went with a loan applicant while she and the employee when to an "office" where three Thais were sitting around a table, filling out reciept books and using photoshop to creat invoices...they boxed the paperwork and took them to the bank manager, along with an envelope that held 50,000 baht. From there, the documents were sent to BKK to the underwriter, along with some cash, I presume...she got the loan (3,000,000)...and then defaulted it a couple of years later...I assume this is pretty common here, because if you view any banks website, there is a plethora of foreclosures...I also knew the sister of a senior bank employee...she got a 10,000,000 baht loan, with no questions asked...she defaulted as well, but there have been no attempts by the bank to seize the property purchased...she simply pockets the rental income each month, with no intention of repaying the loan...

Hummmmm.....This is only about Thailand or many western countries. Sounds very familiar to me.