Notarized Loan Agreements & Promissory Notes in Bangkok

Under Thai law, Section 653 of the Civil and Commercial Code (CCC) requires that any loan of money exceeding THB 2,000 must be evidenced in writing and signed by the borrower to be enforceable in court — but notarization is NOT a Thai statutory requirement. However, notarization is strongly recommended for the following reasons: (1) Evidentiary weight in court — a notarized loan agreement creates a presumption of authenticity, shifting the burden of proof to the borrower to deny the signature (Section 127 of Thai Civil Procedure Code). (2) Cross-border enforcement — if either party is foreign or the loan is in foreign currency, notarization is essential for recognition in the lender's or borrower's home country. (3) Bank requirements — Thai banks (Bangkok Bank, SCB, Kasikorn, Krungthai) require notarized loan agreements for amounts over THB 1 million when one party is foreign. (4) Tax compliance — Revenue Department accepts notarized loan agreements as legitimate evidence to avoid the 'gift' presumption (which triggers 5% withholding tax). (5) Apostille eligibility post-2026 — for international enforcement in 125+ Hague countries. (6) Land Department requires notarized loan agreements + mortgage deeds for property-backed loans. iVC's Notarial Services Attorney witnesses signatures from lender, borrower, and guarantors, then issues a sealed Notarial Certification.

iVC handles all loan instrument types: (1) Personal Loan Agreement — between individuals, secured or unsecured, fixed or variable rate (2) Promissory Note — single-sided unconditional promise to pay (Section 982 CCC) (3) Director's Loan Agreement — loans between company and director (must comply with Section 1198 CCC + shareholder resolution) (4) Shareholder Loan — capital contribution alternative, with interest at market rate to avoid transfer pricing issues (5) Inter-company Loan — between Thai company and foreign parent/subsidiary (must comply with BOI/Revenue Code transfer pricing rules + Thin Capitalization 3:1 debt-to-equity for related-party loans) (6) Mortgage Loan Agreement — backed by Thai real estate (must be registered with Land Department, max 30-year term, secured by Thor.Dor. 21 mortgage form) (7) Loan with Security/Pledge — backed by shares, deposits, or chattels (Section 747-769 CCC) (8) Bridge Loan — short-term financing pending sale or refinance (9) Convertible Loan / SAFE Note — startup financing, convertible to equity (10) Loan to Subsidiary in Home Country — cross-border lending from Thai expat to foreign entity (11) Currency-Specific Loans — THB, USD, EUR, GBP, JPY, CNY, SGD, AUD with FX clauses (12) Family/Friend Loan — informal but documented for tax purposes.

iVC's template Loan Agreement (and any deed we review for notarization) includes the minimum required clauses for enforceability in Thai and foreign courts: (1) Parties — full legal names, addresses, ID/passport numbers, tax IDs of Lender, Borrower, Guarantor (if any). (2) Principal amount — in numbers AND words; currency clearly stated (THB / USD / EUR etc.). (3) Interest rate — fixed or floating; if floating, the reference rate (THBFIX, SOFR, EURIBOR, BoT MLR); compounding frequency; default interest (Thai law allows max 15% per annum for non-financial-institution lenders per Section 654 CCC; the 2017 Civil and Commercial Code amendment caps at 15% — higher rates void). (4) Repayment schedule — bullet, amortizing, or balloon; specific payment dates; bank account for transfers. (5) Maturity date — specific date or 'on demand'. (6) Security/collateral — if any (mortgage, pledge, guarantee). (7) Default events — payment default, cross-default, insolvency, breach of covenants. (8) Acceleration clause — lender's right to demand full repayment on default. (9) Governing law — typically Thai law, with foreign-jurisdiction alternative for cross-border loans. (10) Dispute resolution — Thai courts (Bangkok South Civil Court most common) or arbitration (THAC, SIAC, HKIAC, LCIA). (11) Force majeure. (12) Stamp duty — THB 1 per THB 2,000 of principal (max THB 10,000) under Revenue Code Stamp Duty Schedule.

Top 10 expat scenarios for notarized Personal Loans at iVC: (1) Friend-to-friend loan for business startup (typical: 500K-5M THB, 5-10% pa, 1-3 year term) (2) Family loan parent to adult child for property down payment in Bangkok condo or Pattaya villa (typical: 2-10M THB, 3-5% pa, 5-10 year term) (3) Spouse loan Thai wife to foreign husband or vice versa for business capital (typical: 1-5M THB, 0-5% pa, on-demand) (4) Business partner loan between two co-founders before company is formally capitalized (typical: 200K-2M THB, 6% pa, 1 year) (5) Cross-border loan from foreign HQ to Thai expat employee (typical: USD 50K-500K, SOFR+200bp, 3-5 years) (6) Real estate seller financing Thai seller lending to foreign buyer for condo purchase (Thai law allows up to 49% foreign condo ownership; secured by mortgage on the condo) (7) Yacht/boat financing for marine asset purchase (8) Education loan to fund spouse or children's international school (typical: 500K-3M THB) (9) Medical emergency loan to fund expat hospitalization (10) Visa-related show-money loan with proper repayment terms (cannot be a sham — Thai Immigration audits show-money sources). Each scenario has specific drafting nuances iVC's Notary handles.

When an expat in Thailand lends money to a foreign person/entity, several Thai regulations apply: (1) Bank of Thailand (BoT) Notification — outward loans by Thai residents exceeding USD 200,000 per transaction must be reported to BoT via Foreign Exchange Transaction Form (FET) submitted through the Authorized Agent Bank. (2) AMLO (Anti-Money Laundering Office) — banks must report suspicious transactions; lender should be prepared to demonstrate source of funds (employment income, business profits, sale of asset, inheritance) with notarized supporting documents. (3) Withholding Tax — interest paid by foreign borrower to Thai-resident lender is taxable in Thailand (Personal Income Tax progressive rates 5-35%; foreign WHT may be creditable via Double Tax Treaty). (4) Transfer Pricing (if borrower is related party — subsidiary, parent, sister company) — interest rate must be at arm's length per Revenue Code Section 71 bis + 2020 Transfer Pricing Act; iVC drafts the rate based on documented comparables. (5) Foreign Investment Reporting — outward loans to controlled foreign entities trigger CRS/FATCA reporting. (6) Currency — loans can be denominated in any currency; if in foreign currency, BoT FET reporting applies. (7) Settlement — must be via licensed bank, not cash or crypto. iVC's notarized loan agreement satisfies BoT documentation requirements and is accepted by Authorized Agent Banks.

iVC fee schedule (transparent, all-inclusive): (A) Notarization only (you supply the agreement): 2,500-5,500 THB for single signature; 4,500-8,500 THB with co-borrower or guarantor. (B) Notarization + Apostille (post-2026): 6,500-12,500 THB. (C) Notarization + MOFA + Embassy (pre-2026 or non-Hague): 12,500-25,500 THB. (D) Drafting + Notarization (template based, common loan types): 8,500-18,500 THB. (E) Drafting + Notarization (bespoke, complex cross-border or related-party): 25,000-65,000 THB. (F) Mortgage Loan + Land Department registration (full package): 35,000-95,000 THB + 1% mortgage registration fee at Land Department. (G) Mobile service (notary to hotel/condo): +3,500-6,500 THB. (H) Express same-day: +50%. (I) Thai translation by MoJ Master Translator (for court enforcement in Thailand): +5,000-15,000 THB. (J) BoT FET form preparation (for outward loan over USD 200K): +8,500 THB. Payment: THB cash, credit cards (Visa/Mastercard/Amex, 3-4% surcharge), bank transfer, PromptPay, USD/EUR/GBP cash at daily rate.

Critical legal limit: Under Section 654 of the Thai Civil and Commercial Code (amended 2017), the maximum interest rate for loans between non-financial-institution parties is 15% per annum. Any interest rate exceeding 15% is void as to the excess (the principal remains enforceable but the interest is capped at 15%). For loans by licensed financial institutions (banks, finance companies, credit card companies), the BoT and Ministry of Finance set caps that may differ: (a) Credit cards: 16% pa (BoT, since 2023). (b) Personal loans by non-bank lenders: 25% pa (Ministry of Finance). (c) Nano-finance: 33% pa. (d) Pico-finance: 33% pa. (e) Hire-purchase (motor vehicles): 23% pa for cars, 25% for motorcycles. Default interest can be charged separately at the Thai default rate (currently 5% per annum per Section 7 CCC + 2% per Section 224 CCC). Compound interest is prohibited (Section 655 CCC) — interest cannot be added to principal to bear further interest. Criminal penalty: charging interest above 15% (without license) is a criminal offense under Section 4 of the Loan Money with Excessive Interest Act 2017 — up to 2 years imprisonment + fine up to THB 200,000. iVC reviews every loan agreement for compliance before notarization to protect both lender and borrower.

iVC International Visa Center — 246/1 Sukhumvit 22, Khlong Toei, Bangkok 10110. Open every day 09:00-18:00. Two Notarial Services Attorneys on staff (Lic. #M-456 + #M-892), both with experience in cross-border lending instruments including BoT FET filings, transfer pricing documentation, and mortgage registration at Land Department. Phone: 080-557-8887 (English/Thai/Mandarin/Japanese). LINE: @iVisa. Email: info@ivc.ltd. WhatsApp: +66-80-557-8887. Process: (1) Send draft loan agreement via LINE/email — iVC reviews within 4 hours for free (2) Quotation provided same day (3) Execution appointment within 24-48 hours (4) Notarization + sealing on the spot (5) Apostille / MOFA / Embassy follow-up handled by iVC. Mobile execution to your office, hotel, or condo across Bangkok and BMR (Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon). Out-of-area (Pattaya, Hua Hin, Phuket, Chiang Mai) with 48-hour notice. NDA on request, PDPA-compliant data handling, hard copies stored in fireproof safe until collected. Free consultation for first-time clients to determine optimal structure.