PATTAYA, Thailand – Thailand’s household debt reached 88% of GDP last year, with hire-purchase loans for cars and motorcycles accounting for nearly 10%. Loan rejections rose, and non-performing loans increased, creating financial pressure for many families.
This year, operators report a slight easing in the market, as some borrowers manage to clear debts. The Bank of Thailand (BOT) is introducing new rules to bring all hire-purchase and leasing businesses under supervision starting Dec. 2, 2025, under the Financial Institution Business Act.
All hire-purchase and vehicle leasing companies (excluding financial institutions, finance groups, special-purpose banks, and taxi cooperatives) must register and submit business data via BOT’s HPLS system from Oct. 10, 2025, to Mar. 31, 2026. Newly registered operators from Dec. 3, 2025, must report within 120 days. Non-compliance carries legal penalties, including fines and imprisonment.
BOT assistant governor Daranee Saeju stressed that the move ensures transparency and consumer protection in the hire-purchase sector, while allowing regulators to monitor and reduce systemic risks.
Pattaya businesses, particularly in retail, tourism, and transport, are watching the developments closely. Many hope that as Thais gradually pay off debts, household spending power will recover, boosting local commerce. However, experts note that it may take time before significant improvements are seen, as debt relief and market recovery are gradual processes.
