Household debt in Thailand has surged by 25% since the end of 2022, hitting a record high of 1.23 trillion baht as of January this year, according to the National Credit Bureau (NCB).
Surapol Opasatien, the bureau’s chief executive, indicated that outstanding non-performing loans (NPLs) in the household sector are anticipated to rise again in the first quarter of this year. At the close of 2022, NPLs stood at 980 billion baht, climbing to 1.05 trillion by the end of 2023, and reaching 1.22 trillion at the end of 2024, based on the bureau’s data.
In a similar trend, troubled debt restructuring (TDR) has also increased continuously, now at 1.07 trillion baht as of January, following a consistent upward trend since the fourth quarter of 2022. TDR figures were 780 billion baht at the end of 2022, rising to 1.04 trillion in 2023 and 1.06 trillion last year.
Mr. Surapol noted, “TDR has continued to grow due to debt restructuring programs launched by financial institutions. This amount is expected to rise further in the first quarter of this year, particularly in line with the recent ‘You Fight, We Help’ debt relief initiative.”
He added that borrowers classified as NPLs due to the pandemic’s effects, termed NPL Account 21, should qualify for targeted debt relief measures. These borrowers had shown a solid repayment history, consistently making payments for at least 12 months before being adversely affected by the pandemic.
“Given their strong repayment track record, they should be eligible for assistance through a targeted program,” he stated, suggesting that such a program should cater to small-scale borrowers with debts ranging from 100,000 to 300,000 baht.
Former Prime Minister Thaksin Shinawatra recently proposed that the government create a program to acquire bad debts from banks, giving debtors extended time to repay. Finance Minister Pichai Chunhavajira expressed support for providing assistance to borrowers with loans below 100,000 baht, which account for 35% of total household debt.
Data from the NCB as of January 2025 shows that NPL Account 21 comprises 2.2 million borrowers, representing 2.9 million loan accounts with a total outstanding balance of 201 billion baht.
Moreover, Mr. Surapol mentioned that mortgage growth has been slowing. As of January, total outstanding consumer loans reached 13.6 trillion baht, marking a 0.3% month-on-month decline and a 0.5% decrease year-on-year. Housing loans were valued at 5.12 trillion baht, down 0.3% month-on-month but up 2.8% compared to the previous year.
During the same period, auto loans reached 2.39 trillion baht, declining by 0.8% month-on-month and by 8.8% year-on-year. Credit card loans amounted to 571 billion baht, falling by 1.7% month-on-month and 0.8% year-on-year. Personal loans totaled 2.63 trillion baht, seeing a 0.2% decrease month-on-month but a 1.5% increase year-on-year.
