# Thailand’s household non-performing loans (NPLs) surge to a record 1.23 trillion baht

- Link: https://www.thailand-business-news.com/banking/204713-thailands-household-non-performing-loans-npls-surge-to-a-record-1-23-trillion-baht
- Published: 2025-03-26T07:31:00+07:00
- Author: Daniel Lorenzzo

The National Credit Bureau of Thailand reported a 25% increase in non-performing
loans (NPLs) among Thai households since the end of 2022, reaching a record high
of 1.23 trillion baht in January this year.

 * Non-performing loans (NPLs) in Thailand’s household sector have increased by 
   25% since the end of 2022, reaching a record high of 1.23 trillion baht as of
   January this year, with expectations of further rise in the first quarter, as
   reported by the National Credit Bureau.
 * Troubled debt restructuring (TDR) has also been steadily increasing, reaching
   1.07 trillion baht as of January, and is expected to continue rising due to debt
   restructuring programs implemented by financial institutions.
 * The Finance Minister favors assistance for borrowers with loans of less than 
   100,000 baht, which account for 35% of total household debt, while mortgage growth
   has been slowing, with housing loans seeing a decrease of 0.3% month-on-month,
   but an increase of 2.8% year-on-year.

Non-performing loans (NPLs) are projected to increase further during the first quarter
of this year. Meanwhile, troubled debt restructuring (TDR) has been steadily climbing,
reaching 1.07 trillion baht as of January. This rise in TDR is largely attributed
to debt restructuring initiatives introduced by financial institutions.

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The ‘You Fight, We Help’ debt relief initiative is expected to further increase 
the TDR amount. The credit bureau suggests that borrowers affected by the pandemic,
classified as NPL Account 21, should be eligible for targeted debt relief measures.

Meanwhile, mortgage growth has been slowing, with total outstanding consumer loans
decreasing by 0.3% month-on-month and 0.5% year-on-year as of January. Housing loans,
auto loans, credit card loans, and personal loans have all seen varying degrees 
of contraction, except for housing loans which saw a 2.8% year-on-year increase.

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This trend indicates a cautious consumer sentiment, likely influenced by rising 
interest rates and economic uncertainty. Auto loans and personal loans have experienced
the steepest declines, reflecting reduced discretionary spending and tighter lending
conditions. Credit card loans have also contracted, suggesting a shift in consumer
behavior toward more conservative financial management. Conversely, the growth in
housing loans highlights sustained demand in the real estate market, potentially
driven by favorable government policies or a desire for long-term investments amidst
market volatility.