New Usury Law

The Act Prohibiting Charging an Interest in Excess of a Specified Rate, B.E. 2560 (2017) (the “Usury Act”) is enacted. This new Usury Act is replacing the existing Act Prohibiting Charging an Interest in Excess of a Specified Rate, B.E. 2475 (1932). The Usury Act lays down the following conditions:

1. Lending money at a rate in excess of 15% per year is prohibited.

2. Taking any action to conceal a loan of money at a rate in excess of 15% per year is prohibited.

3. Putting any incorrect statement pertaining to an amount of the loan or other in evidence for the loan or a negotiated instrument to conceal charging an interest in excess of 15% per year is prohibited.

4. Stipulating to take or receive any benefit other than the interest, either money or thing by any method to the extent that it is clear that such benefit proportionately exceeds the reasonable benefit under the conditions of a loan of money.

A violator shall be sentenced not exceeding two years or be fined not exceeding Baht 200,000 or both.

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Yours faithfully,

Narit Direkwattanachai, LLM (Cambridge)
Attorney at Law
T: 086 785 0793
E: narit@naritlaw.com

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