Thai Household Debt Trends and Shift to Online Loans

MGR Online•Economy•2d ago

Reader Briefing

Bnomics analysis indicates Thai household debt as a percentage of GDP has dropped to a 6-year low, though access to credit has become more difficult.

•Thai household debt fell to 85.9% of GDP, the lowest in 6 years.
•Credit access from formal financial institutions has tightened, particularly for SMEs and consumers.
•Young people aged 20-35 show high debt levels and a high non-performing loan (NPL) rate of 27%.
•The IMF projects the Thai economy to grow by approximately 1.9% in 2026 (2026).

•Thai household debt in the first quarter of 2025 stood at approximately 16.4 trillion baht, an increase of 0.5% from the previous year.
•The decrease in the household debt-to-GDP ratio to 85.9% is partly due to Nominal GDP growing faster than the debt amount.
•Financial institutions have remained cautious in lending to retail and SME sectors due to high-risk credit quality in some groups.
•Risk is shifting from large debts to frequent small debts, such as Buy Now Pay Later (BNPL) services among people under 30.
•Approximately 52.7% of Thais aged 20-35 have debt, with a non-performing loan (NPL) rate of 27%.
•High household debt remains a significant constraint on Thailand's economic recovery and domestic purchasing power.
•Some borrowers are shifting to pawnshops, savings cooperatives, and informal loan sources as formal bank loans become harder to obtain.
•An aging society complicates debt management as the working-age population decreases and must support multiple family members.

Full article content is available on the original source.

Bnomics

The research department of Bangkok Bank that provided the debt analysis.

Bangkok Bank(ธนาคารกรุงเทพ)ℹ️

The bank whose research department, Bnomics, conducted the analysis.

International Monetary Fund(กองทุนการเงินระหว่างประเทศ)ℹ️

The organization that estimated Thailand's economic growth for the year 2026 (2026).

Thailand(ไทย)ℹ️

The country experiencing a shift in household debt patterns and an aging society.