The Bank of Thailand clarified that it did not set a DSR ceiling of 2 times the installment amount – it did not prohibit relatives from jointly borrowing.

Bangkok, The Bank of Thailand has clarified that it has not set a ceiling on the debt service burden ratio (DSR) that requires borrowers to have a salary that is twice the amount of the installments, and has not prohibited relatives from co-borrowing, but rather allows financial institutions to consider whether borrowers will have money left over for necessary expenses after repaying. Ms. Suwannee Jesadasak, Assistant Governor, Financial Institutions Supervision Group, Bank of Thailand (BOT), disclosed the news that the BOT has set a ceiling on the debt service ratio (DSR) that borrowers must have a salary of 2 times the installment and prohibits debtors who are relatives from co-borrowing. She explained that the Responsible Lending criteria, which have been in effect since January 1, 2024, do not set a ceiling on the debt service ratio (DSR). The criteria state that financial institutions must consider taking care of debtors so that they have enough money left over from debt payments to cover necessary exp enses such as food and rent. Service providers may set the DSR ratio or other ratios as internal criteria to be used in considering loan approval. In addition, the BOT does not have any criteria that prohibits debtors from bringing relatives to be co-borrowers, but encourages individuals who already intend to help debtors repay their debts to create a joint loan contract to be consistent with their actual responsibility in repaying their debts. The BOT hopes that people will have a good life, and that debtors will only owe what they need and can repay, in order to prevent over-debt and to prevent difficulties in life from new debt burdens. Source: Thai News Agency