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BANGKOK 22 October 2018 20:06

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Loan Sharks May Be Registered In Bid To Curb Interest Rates: Thailand

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"Loan sharks may be allowed to register with the Finance Ministry in a bid to bring down the interest rates they charge."

In related news I heard that burglars may also be allowed to register in a bid to bring down burglaries!

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Sharks are not easy to catch, one wounders if they would want to be tagged and registered , they then will coffee1.gif have to pay tax.coffee1.gif

and when they have to pay tax the rates will go up, not down

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Shows how inept this government really is. Legalize mafia activity. The USA never legalized loan sharks. There is a private lending industry which is regulated far beyond anything that Thailand is even capable of doing. PTP just wants their grubby little hands in another honey pot, and they don't care how legal or illegal it is.

Using half truths, lies, ignorance, and fear mongering is what they're good at.

no the other countries monopolized loan sharks. It is called bank, but it isn't different.

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I read this annually, nothing changes.

Our main local guy charges 20% Per month on the entire amount until all is paid. On a loan of 30k they have to pay 6000B a month just in interest, even if they have 500B of the principle remaining. I find this hideous, but then again most of his customers get in to the problem voluntary via gambling.

You hit the nail right on the head..... Same problems for many years, it has never changed to my knowledge........

Great post......clap2.gifcheesy.gifclap2.gifcheesy.gifclap2.gifcheesy.gif

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Actually there used to be legal loan sharks in Thailand before 1997. They were called Finance Houses & they - with their easy loans - were the major reason for Thailand's 'Tom Yung' crash in 1997.Of course a property bubble which burst was also responsible.

I like the idea mentioned above of Grameen or micro finance but there's too little rake-off for the authorities here in that.

It's a bit like the idea of legalising gambling - not a bad idea but it would interfere with the pay-off to you know who.

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The only reason they are called "loan sharks" is that they charge more already than they are allowed to under Thai law. Interestingly the banks are allowed to charge more than a private citizen that is willing to make a loan and take all the risks. Where the government is at risk if the registered banks and lenders goes bankrupt. So why does the bank have no legal limit on what they can charge for interest rates or services related to loans but individuals do?

Is 28% annual rates effectively not loan-shark rates when individual loaning fund can not charge half of that legally? What are the reason for a lower interest limits for non banks loans.

Maybe a more level playing field would lower non bank rates as well encouraging others to make small loans to responsible borrowers without needing to fear the law.

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More loan sharks, less control, and another Mafia is born,..... the Loanshark organized crime Mafia of Thailand giggle.gifgiggle.gifgiggle.gifgiggle.gif

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I am sorry to see that they are using the outfits in the United States, like the Money Store, and many other outlets just like them, as examples. These stores earn over 300% a year on giving you loans. They are usually just for a two week period, in which you still do not have the money needed to pay back, so you have to take another loan from them to make a payment on the first loan. You get caught in a cycle where you are just paying interest on interest, and the prinicpal never gets paid off. Thailand does not need to use this as a respectable business that helps people. They prey on people. The major banks in the United States are crooks themselves, and these outifts are just worse. Budda help the Thai's if they think it works well in America.

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its a crazy banking system the world over , ...if you have a $10,000,000 home and business but are $15,000,000 in debt the banks will loan you money , but if you have no debts they wont lend you a penny cos you dont have a home or land ! ,........the US is supposedly the worlds richest country , but they have the words biggest debt !!,....doesn't that make them the worlds poorest country living in debt ?? , banks only give loans to the people who need it least , ............what is needed is a peoples cooperative bank, giving cheap loans , the problem is TIT , can anyone be trusted not to skim the cream ??

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The police in SamRong police station (just at the end of the skytrain service) are the local loan sharks charging 40% per month on the money lent out by a shadowy policeman, rank as yet unknown.

Someone has problems and is pulled in the shadowy policeman and his fellow scum arrange the ''bail'' at a high level and at 40% interest a month till the whole sum is paid off in full.

There is also a scheme to enable charges to be dropped or reduced in severity as well as a scheme to return confiscated motorcycles and cars..

Do we really think that the police will intervene in the matter when they are the biggest school of sharks in the area?

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The maximum loan for each individual may be fixed at Bt10,000 with the interest rate much lower than those charged by loan sharks. Seriously? What are they going to buy with 10,000 baht?

Outstanding consumer loans surged 20.4 per cent year on year to Bt2.75 trillion while defaults on personal loans jumped by 37.8 per cent and on credit cards by 11.1 per cent. ​Hmm sounds familiar, isn't that what happened to the US? Got a couple living next to me, both in their late 20's, two new cars, a 4 mil house, another mil for furnishings. Can't imagine they saved 6-7 mil and paid cash. Got to be a heavy note to pay every month.

The collapse is coming, just wait, it won't be long. Oh what the hell am I talking about, the world is going to end on Dec 21 anyway. lets all get laid!

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I have relatives who do this, interest is 20% in which the borrowers have a year to pay it off, they put up their chanotes as collateral , and they have not booted anyone off there land (yet). Not the best of all possible worlds but a viable alternative to banks who will not give out fast- long term loans. I would like to see a Grameen style of micro financing in Thailand as a lot of poor farmers need quick money to fix a tractor or buy seed etc. Of course there will always be unsavory loan sharks that cater to people who have gambling debts etc, but as they say “eat your cookies in bed and you’ll sleep with crumbs”.

Really ?

20%/yr. is cheap.

Mostly what I see is 15%/month.......

Ridiculous !

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3 weeks ago i read an article in the bkk post ''thailand has reached a critcle level of household dept''...just what we need,more ways to bury themselves....

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At least the authorities are looking at it. As usual they are damned if they do or damned if they don't on Thaivisa.

Looking at it; pretending to look at it; and pretending to do something after either of those...smoke and mirrors.

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The maximum loan for each individual may be fixed at Bt10,000 with the interest rate much lower than those charged by loan sharks. Seriously? What are they going to buy with 10,000 baht?

Outstanding consumer loans surged 20.4 per cent year on year to Bt2.75 trillion while defaults on personal loans jumped by 37.8 per cent and on credit cards by 11.1 per cent. ​Hmm sounds familiar, isn't that what happened to the US? Got a couple living next to me, both in their late 20's, two new cars, a 4 mil house, another mil for furnishings. Can't imagine they saved 6-7 mil and paid cash. Got to be a heavy note to pay every month.

The collapse is coming, just wait, it won't be long. Oh what the hell am I talking about, the world is going to end on Dec 21 anyway. lets all get laid!

Correct, but the schoolkids round here assure me it's the 23rd ;-)

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