In an era of high economic uncertainty, many people need cash flow to handle emergencies or daily living expenses. Yet, when they apply for loans, they often get rejected... This raises the question: what kind of people get approved for loans in this declining credit market?
When needing cash flow, Thais often think of withdrawing money from credit cards or cash cards, which can be used anytime if there is available credit. But nowadays, applying for a personal loan (Ploan) can be difficult, as reflected in social media complaints that borrowers are rejected, not approved, or approved for less than requested amounts.
Looking at the Thai market, outstanding personal loan balances as of May 2026 stood at 466 billion baht, down 1.46% year-on-year, with non-performing loans (NPLs) — debts overdue more than three months — at 3.68%, a decrease of 0.13% year-on-year. This data suggests that both banks and non-bank financial institutions remain strict and cautious in issuing personal loans, beyond just borrowers’ perceptions.
Therefore, the key question is: what kind of borrowers are banks and non-banks willing to lend to? Thairath Money gathered answers from both sides here.
Starting with Atit Rujirawat, Chief Executive Officer of Krungsri Consumer said that in recent years, the personal loan market has seen stricter criteria. Krungsri has cautiously issued loans, resulting in a lower Ploan NPL rate than the market average. Currently, the bank is adjusting loan conditions to become more flexible while maintaining appropriate risk control.
Additionally, over the next 3-5 years, Krungsri aims to increase the share of personal loans from the current 30%. This is partly because the personal loan interest rate (25% per year) is higher than credit card rates (16% per year), providing more room to compete in the market.
More importantly, personal loans do not have to be in card form. Krungsri is developing payment innovations tailored to customer groups, possibly through app-based or QR code scanning payments, among others.
Thakorn Piyapan, President of TMBThanachart Bank (ttb) said personal loans are a market where banks are ready to compete because of higher interest rates compared to other loan types. However, each bank must find unique selling points to attract customers.
Since early 2026, ttb has launched a campaign targeting customers with good repayment and credit history, using Credit Score to determine interest rates. Those with better financial records receive lower rates because Credit Score reveals borrowers’ financial behavior clearly, including discipline in repayments, types of debt, and where debts exist.
"Previously, we used income to decide the interest rate, but now we use Credit Score so that those with good records get better rates. We recognize that income alone does not fully reflect a person's ability to repay debt," Thakorn said.
Ultimately, there may not be a definitive answer on who will be approved for personal loans 100%, but given the declining loan market and lenders’ willingness to lend, borrowers with good financial history, consistent on-time repayments, no defaults, and clear, steady income have better chances of approval.
Read personal finance and financial planning news with Thairath Money to help you achieve "Good Finance, Good Life".https://www.thairath.co.th/money/personal_finance
Follow the Facebook page: Thairath Money at this linkhttps://www.facebook.com/ThairathMoney