Household Debt at 6-Year Low, NESDC Warns of Loan Defaults

Thansettakij•Economy•2d ago

Reader Briefing

The NESDC reports that Thai household debt relative to GDP has dropped to its lowest level since 2020, despite rising risks of loan defaults.

•Household debt as a percentage of GDP fell to 85.9% in the first quarter of 2026.
•Total household debt value reached 16.41 trillion baht by the end of the first quarter of 2026.
•The NESDC warns of risks from borrowers holding multiple home loan accounts.
•Credit Bureau data shows a rise in special mention loans (SMLs) to 5.53 trillion baht.

•Household debt in the first quarter of 2026 totaled 16.41 trillion baht, representing a 0.50% increase from the previous year.
•The household debt-to-GDP ratio decreased to 85.9%, the lowest level since the second quarter of 2020.
•Personal loans grew by 4.82% and real estate loans grew by 1.73%, while auto loans contracted by 7.51% for the 10th consecutive quarter.
•The government implemented real estate stimulus measures, including reducing transfer and mortgage fees to 0.01% for homes under 7 million baht.
•Danucha Pichayanan warned that some borrowers open multiple home loan accounts, increasing the risk of default due to excessive debt burdens.
•The risk of multiple loans is partially due to financial institutions reporting credit data monthly, creating a window for borrowers to apply to multiple banks.
•SCB EIC reported that between 2019-2025, only 15.0% of debtors in debt restructuring programs could return to normal payments.
•Danucha Pichayanan suggested studying South Korea's Personal Debtor Rehabilitation Program to allow court-mediated debt plan adjustments.

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Danucha Pichayanan

"Existing measures are already aimed at helping this group and the NPL group."

มาตรการที่มีอยู่ตอนนี้มันก็มุ่งที่จะไปช่วยกลุ่มนี้อยู่แล้ว และกลุ่มที่เป็น NPL อยู่แล้วด้วย

Danucha Pichayanan(ดนุชา พิชยนันท์)

Secretary-General of the National Economic and Social Development Council.

National Economic and Social Development Council(สภาพัฒนาการเศรษฐกิจและสังคมแห่งชาติ)

The organization (NESDC) that released the report on the Thai social situation for the second quarter of 2026.

Credit Bureau(เครดิตบูโร)ℹ️

The entity reporting data on overdue loans and the number of loan accounts held by borrowers.

SCB EIC

The entity that reported on the effectiveness of debt restructuring measures between 2019-2025.

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The central bank currently working with commercial banks to improve loan conditions.

South Korea(เกาหลีใต้)ℹ️

The country with a Personal Debtor Rehabilitation Program suggested for study by the NESDC.

Debt Clinic(คลินิกแก้หนี้)

A debt restructuring measure for debtors.

Khun Su Rao Chuay(คุณสู้ เราช่วย)

A debt restructuring measure for debtors.

Personal Debtor Rehabilitation Program

A South Korean program allowing debtors to adjust payment plans through court processes.