Accra:The government is planning to implement regulations on "Buy Now, Pay Later" (BNPL) loans, setting a cap of 20,000 baht and limiting interest rates to 15%.

According to Thai News Agency, Deputy Spokesperson for the Prime Minister's Office, Ms. Lalida Periswiwatana, announced that the Ministry of Finance, overseen by Deputy Prime Minister and Minister of Finance Mr. Ekniti Nitithanprapas, along with the Bank of Thailand (BOT), is advancing efforts to impose stricter controls on BNPL loans. A draft regulatory guideline is open for public comment from October 16 to November 15, 2026. The initiative aims to prevent excessive debt among the public, improve transparency, protect digital financial service users, and ensure consumer fairness.

The proposed guidelines specify that users must be at least 20 years old, with a maximum loan amount of 20,000 baht per person. Repayment can be made in installments over a maximum of 6 months, with an annual interest rate, including fees, capped at 15%. The effective rate includes all fees and additional charges, giving consumers a clear understanding of the total costs.

Service providers are advised to evaluate a customer's repayment capability before approving loans, fully disclose interest rates, fees, and repayment schedules, separate the purchase from the loan process, and establish appropriate debt collection practices. This is to prevent consumers from accumulating unintended debt through installment purchases.

Ms. Lalida highlighted that while individual installment payments may appear manageable, multiple payments can lead to significant debt burdens. The proposed regulations aim to ensure fair and accessible financial services, informing consumers of costs and their repayment ability before borrowing.

The draft regulations remain open for public feedback until November 15, 2026. Feedback can be submitted via the Bank of Thailand's website or the central legal system to develop appropriate and fair regulations.