Thai loan agreement — if you lend money, make evidence that holds up
About to lend money to a friend, relative, or someone you know? A loan agreement is the lender's only real protection — a loan over 2,000 baht must be evidenced in writing signed by the borrower to be enforceable in court (CCC Section 653), and interest may not exceed 15% per year (Section 654). Kontrax lets you make a solid loan agreement in 10 minutes — amount, due date, lawful interest — have the borrower e-sign immediately, and get reminders when payment is due.
What Thai law requires
Thai law sets clear rules on evidence, interest, and electronic proof for loan agreements. The points lenders and borrowers must know:
CCC Section 653
A loan of more than 2,000 baht must be evidenced in writing signed by the borrower, or it cannot be enforced by court action. Proving that the loan has been repaid likewise requires either written evidence signed by the lender, or the return or cancellation of the loan document.
CCC Section 654 and the Act on Undue Interest Rates B.E. 2560 (2017)
The law caps interest at 15% per year. A lender that is not a financial institution with its own specific governing law who charges interest above this cap commits a criminal offence, and case law treats the excess interest term as void — though the principal remains recoverable.
Electronic Transactions Act B.E. 2544 (2001), Section 8
Electronic data that is accessible and usable for subsequent reference without altering its meaning is treated as written evidence. This means an online loan agreement or a chat message that clearly identifies the borrower and the amount may serve as evidence of the loan.
What a Thai loan agreement must contain
A well-drafted loan agreement should cover at least the following, completely and clearly:
- Principal amount, written in both numerals and words
- Method of disbursing the loan
- Interest rate, which must not exceed the legal cap
- Repayment date and instalment schedule
- Payment method and evidence of receipt
- Consequences of default
- The right to repay early
- The borrower's signature — the critical requirement under CCC Section 653
Create your loan agreement online with Kontrax
- Draft from a loan-agreement template written by Thai lawyers, covering every clause above
- Both parties e-sign with legal effect under the Electronic Transactions Act B.E. 2544 (2001), with signer identity verification
- Signed documents are sealed with a cryptographic hash so any later tampering is detectable
- Reminders before each payment due date help reduce missed instalments
Sign up free and create your first contract today
Frequently asked questions
Lending to a friend or relative — do I really need a contract?
Yes — the closer the relationship, the more you need one. Most loan disputes are between people who know each other. A contract is not distrust; it keeps both sides aligned on amount, due date, and interest. On Kontrax it takes under 10 minutes, and the borrower signs from their phone — no meetup needed.
I transferred the loan by bank — is the slip enough evidence?
A transfer slip only proves money moved from your account to theirs — not that it was a loan. The other side can claim it was a gift or payment for something else. Pair the slip with a loan agreement stating the amount and due date, so you have evidence of both the handover and the agreement.
I lent 3,000 baht with no written contract — can I sue to get it back?
It would be difficult to enforce, because a loan of more than 2,000 baht requires written evidence signed by the borrower under CCC Section 653. Without written evidence, a court will not accept witness testimony alone to enforce repayment — so always put a loan of more than 2,000 baht in writing.
Can a LINE chat serve as evidence of a loan?
It may — under Electronic Transactions Act B.E. 2544 (2001) Section 8, electronic data that is accessible and usable for later reference without altering its meaning is treated as written evidence, if the messages clearly identify the borrower and the amount. A formally signed contract is still far safer and clearer, however.
How much interest can I charge?
No more than 15% per year, under CCC Section 654 together with the Act on Undue Interest Rates B.E. 2560 (2017). If a lender that is not a specialised financial institution charges more than this, the excess is void and may also be a criminal offence.
What can I do if the borrower misses the repayment deadline?
First demand payment; if it remains unpaid, use the written loan agreement as evidence to sue for repayment. Kontrax sends reminders before each instalment's due date to help reduce missed payments in the first place.
Do I need a witness or a guarantor?
The law does not require a witness to sign the loan agreement. A guarantee is a separate contract that the parties may choose to add or not, as they agree.
Other contract types
This page provides general information only and is not legal advice for any specific case. Consult a qualified lawyer about your situation.