"Getting a bank loan is getting harder." ,"tags":["bank loans","loan difficulty"]},{
This is not just a perception among Thais but a real concern about whether urgent loan requests will be approved. Why might it be harder to borrow now, and what salary level makes loan approval easier? This article seeks to answer those questions.
The National Economic and Social Development Council (NESDC) reports that Thailand's household debt remains high at over 85%. A worrying issue is the declining quality of loans, especially business loans under 5 million baht, which are expected to continue deteriorating.
A more critical problem is access to credit for both businesses and households. In the first quarter of 2026, loans from cooperatives and pawnshops expanded significantly, while commercial bank lending continued to decline.
Initial measures should focus on reducing the pressure of non-performing loans by supporting households to restructure debt (such as early debt closure programs) and lowering expenses to better cope with the likely rising cost of living in the coming period.
Thus, NESDC's view is that while Thais still need credit, not everyone can easily borrow from banks due to ongoing non-performing loan problems. Financial institutions must carefully consider lending to manage the risk of bad debts. This situation also reflects why people turn to pawnshops or other sources for funds instead.
From the perspective of the Bank of Thailand (BoT) it was found that in the first quarter of 2026, Thais still sought more credit, especially for car hire-purchase loans (during auto expos) and consumer loans, reflecting increased demand for liquidity.
Regarding whether borrowing has become more difficult due to stricter criteria, BoT's latest report states that most financial institutions maintain lending criteria similar to the previous quarter but exercise caution in lending to high-credit-risk groups such as those earning less than 30,000 baht. Many lenders have increased margins (e.g., higher interest rates), tightened collateral requirements, or added other conditions.
In the second quarter of 2026, lending standards for housing loans, credit cards, and other consumer loans are expected to remain stable overall. Only car hire-purchase loans might become stricter at some companies due to increased risk.
So, anyone wishing to borrow from a bank, regardless of loan type, should prepare well. Having a solid financial plan can help ease the loan approval process.
Many might think that a "high salary" alone guarantees loan approval. In reality, banks assess the borrower's debt repayment capacity through a system called DSR (Debt Service Ratio).
Currently, banks generally accept a DSR of about 40% of income; some allow up to 50%, depending on their policies. For example, a 40% DSR means that if you earn 20,000 baht per month, you can allocate up to 8,000 baht monthly to repay debts.
Regarding home loans, information from Krungsri Bank provides a formula to calculate the maximum loan amount: (Borrower's income x 40%) x 150 = maximum loan amount.
If you have existing debts, you can use this formula to estimate your home loan eligibility: (Borrower's income x 40% - existing debt payments) x 150 = maximum loan amount.
Each loan type may have different calculation formulas due to varying loan terms and interest rates. Nowadays, many banks offer tools to help calculate loan eligibility, such as:
Finally, besides repayment ability, financial institutions also review your credit history, such as timely payments, any history of bad debt, job stability, consistent income, age, occupation, and loan term.
In other words, anyone applying for a loan will be thoroughly risk-assessed. To improve approval chances, prepare well and have all documents ready to simplify the process.
Information sources: NESDC, BoT, BAY
Read personal finance and financial planning news with Thairath Money to "Achieve Good Finances, Good Life."https://www.thairath.co.th/money/personal_finance
Follow the Facebook page: Thairath Money at this linkhttps://www.facebook.com/ThairathMoney