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Olafur

Expensive village loans

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I just learned that my Thai wife’s family ran into problem with a very expensive microfinance “Village Fund” loan.

They borrowed 100 000 bath 18 months ago and tell they have to pay 36% interest, which means their debt grows fast.

I found that 15% is the maximum annual interest rate allowed under the "Civil and Commercial Code”.

I just wonder if this is allowed, or some grafts going on?

Anybody know more about this?

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A hundred thousand Baht is not much for a foreigner I reckon. About A$4000 or 1800 UK pounds. Sure I would not want to pay it out. But be a hero and sort it it for them.

However, what you will never ever know is that "is this the only one loan they have?"

I doubt its legal but there will be no legal ramifications to non payment, only hurt, injury sand possibly death. Get off your high horse, pay it for them or get out of there soon.As mentioned it could be a scam to get you to start paying.

Regards

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When two guys show up on a Honda CBR 150 motorbike be sure to ask them under what circumstances is this proposed loan.

What have foreign English teachers have to do with this?

They need the extra cash to supplement their low income...

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36% p.a. or 3% per month is a normal rate if you have land/chanote as collateral/security. Without collateral/security you pay up to 10% interest per month.

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False claims of financial difficulties in order to extract money from a gullible foreigner, should always be considered.

this may well be all about extracting money, I agree. But you'd be surprised how many Thais have accumulated debt, especially debt that is expensive to service like this one.
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Sure be a hero and save the day. Pay it off for them and then take a deep breath.......as before you exhale you will be asked to help with more problems than you ever knew could have existed......

Also, time to carefully check the Land papers IF you have built a house and lock away any registration books if you have vehicles in your name.
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BANGKOK 23 May 2018 06:18
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