Regulated personal loans commonly use an effective rate: interest is calculated from the outstanding principal for each billing period. As principal is repaid, the balance used to calculate the next period’s interest decreases. The Bank of Thailand sets limits on interest, penalties, service charges and fees for this type of loan, but those limits should not be applied to every loan product.
The linked video discusses debt management in general, not loan rates or contract terms. Use the Bank of Thailand’s information and check the loan type stated in your own contract.
Review the full loan offer
- Identify the regulated loan category and how interest is calculated.
- Check the standard rate, any promotional rate and the rate after the promotion ends.
- Request the installment schedule, number of payments and total amount due over the contract.
- Separate interest, fees, insurance costs and charges for late payment.
- Check how extra payments or principal reductions are handled.
Compare offers using the same loan amount and term. A lower installment may conceal a longer term and a higher total cost. Do not compare a flat rate directly with an effective rate. The Bank of Thailand explains approximate conversions, but you should request an actual payment schedule from the lender.
If you are struggling to make payments, contact the lender before missing a payment to discuss restructuring. Also read the guide to discussing credit-card debt with a lender or the guide to organizing debt information before calculating.
Sources
- Bank of Thailand: Effective-rate interest
- Bank of Thailand: Interest and fees for regulated personal loans
- Bank of Thailand: Regulated personal loans
Updated October 16, 2026. Rates and terms must be checked against the actual offer and contract. The caps described apply to specified regulated products, not every loan. The linked video does not provide loan-rate information.