Business loans in Thailand set to expand in Q4: survey

Lenders are expected to be more cautious of small SME borrowers, however.

Business loans in Thailand are expected to pick-up in Q4 FY2025, whilst consumer loan demand will likely see a boost from auto loans.

Large corporate and small and medium enterprises (SME) loan demand is expected to increase in Q4 FY2025 compared to the previous quarter, according to CGS International, based on data from the latest senior loan officer survey by the Bank of Thailand (BOT).

The survey reveals that consumer loan demand will likely be boosted by auto loans, thanks to year-end promotion campaigns from car manufacturers and the Thailand International Motor Expo in December 2025, the investment house said in a 7 November 2025 report.

Despite the higher demand, financial institutions in Thailand are expected to further tighten credit standards for SME loans in Q4.

“In our view, lenders are cautious on small SME borrowers as many are vulnerable amid slow economic growth,” said Weerapat Wonk-Urai, analyst, CGS International.

“However, banks believe that asset quality of large corporate borrowers will improve 
[quarter-on-quarter], thanks to their declining funding cost,” he added.

The Ministry of Finance (MOF) and BOT will launch a special project to tackle household debt by purchasing nonperforming loans (NPLs) of unsecured personal loans with ticket size of less than THB100,000 per account from commercial banks, state banks, and subsidiaries. This is likely to be completed by H1 2026, according to CGS International’s estimates.

“The project will help offload NPLs from banks’ balance sheets and provide troubled debtors the chance to clear their missed payment record in the credit bureau system,” Weerapat said.