Amendments to Interest Rates for Commercial Transactions under Thai Law

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On April 11, 2021, amendments to the Thai Civil and Commercial Code (the “TCCC”) came into effect in Thailand in the form of the Emergency Decree on the TCCC Amendments 2021 (the “TCCC Amendments”).

Before the TCCC Amendments were introduced, the current interest rate in Thailand of 7.5% per annum had been applicable for both the standard interest rate, and the default interest rate (unless otherwise agreed by the parties) under commercial transactions.

Details of the TCCC Amendments

The significant amendments can be summarized as follows:

DescriptionBefore TCCC AmendmentsAfter TCCC Amendments
Standard Interest Rate (Section 7 of the TCCC)*7.5%

per annum

3% per annum (subject to increase or decrease by Royal Decree, which is subject to revision every 3 years by the Ministry of Finance).


Default Interest Rate (Section 224 of the TCCC)**7.5%

per annum

5% per annum (sum of 3% per annum of the Standard Interest Rate under Section 7 of the TCCC , plus 2% per annum add-on interest rate; the 3% per annum is also subject to increase or decrease by Royal Decree).
Default Interest Rate (Section 224 of the TCCC)**7.5%

per annum

In the case of default on installment payments:

Section 244/1 of the TCCC stipulates that the creditor will only be entitled to charge default interest based on the outstanding installment amount, rather than the whole amount of the debt. Any agreement which specifies otherwise shall be void.

Interest Rate Implementation PeriodThe effective date of the TCCC Amendments onwards (April 11, 2021).
ApplicabilityAll commercial transactions under the TCCC

*Assuming there are no prior agreements or laws stipulating otherwise.

**Assuming there are no prior agreement or laws stipulating otherwise, and there are no other legal grounds allowing the creditor to demand the interest is set at a higher rate.


The TCCC Amendments are intended to enhance the law to be in harmony with the social context and economic trends (i.e. especially during the outbreak of COVID-19 pandemic), particularly in the matter of interest rates.

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