On Oct. 9, 2025, Thai CB announced that hire-purchase and leasing businesses for automobiles and motorcycles are now subject to regulation under the Financial institution business act 2008.
Legal entities engaged in hire-purchase and leasing of cars and motorcycles are required to report their business information to Thai CB; reporting period runs from Oct. 10, 2025 to Mar. 31, 2026.
Financial institutions, companies in financial business groups, specialized financial institutions, and taxi cooperatives are exempt from this requirement.
The Royal decree was published in the gazette and will take effect on Dec. 2, 2025.
On Sep. 23, Thai CB issued proposals re vehicle hire purchase, leasing.
Thai CB proposed reg framework for vehicle hire purchase and leasing businesses.
Follows Thai CB Jun. 2025 finalized rules on leasing, hire purchase of cars, #257687.
Hire Purchase and Leasing Business Regulation
Thai CB proposed reg framework for hire purchase and leasing businesses of cars and motorcycles, bringing these operations under Financial institution business act 2008.
Regulations apply to commercial banks, finance companies, financial business group companies, specialized financial institutions, and non-financial institution operators.
Framework establishes interest rate ceilings for individual customers: new cars maximum 10% per annum, used cars maximum 15% per annum, motorcycles maximum 23% per annum.
Requires mandatory disclosure of effective interest rates, default interest rates, service fees, and penalty information through various communication channels.
Mandates creation of payment schedule tables showing instalment breakdowns including principal, interest, VAT, and outstanding balances for individual customers.
Establishes responsible lending practices including product suitability assessments, fair advertising standards, and customer assistance programs for payment difficulties.
Sets default interest rate maximum at 5% per annum for individual customers with specific debt payment hierarchy requirements.
Default Interest Calculation Amendment
Thai CB proposed amendment to exclude individual customer hire purchase contracts from general instalment credit default interest calculation rules.
Amendment clarifies scope of instalment credit definition to align with new vehicle hire purchase and leasing regulations.
Revised definition maintains coverage of lease-like transactions while creating specific carve-out for individual customer vehicle hire purchase agreements.
Financial Business Classification
Thai CB proposed designating vehicle hire purchase and leasing as financial businesses under section 4 of Financial institution business act 2008.
Non-financial institution operators permitted to use financial business names and descriptions, except prohibited terms including bank, capital, or credit foncier.
Consultation End
The consultation is open until Oct. 7, 2025.
Oct. 2025 Framework Finalized
On Oct. 9, 2025, Thai CB announced that hire-purchase and leasing businesses for automobiles and motorcycles are now subject to regulation under the Financial institution business act 2008.
Legal entities engaged in hire-purchase and leasing of cars and motorcycles are required to report their business information to Thai CB; reporting period runs from Oct. 10, 2025 to Mar. 31, 2026.
Financial institutions, companies in financial business groups, specialized financial institutions, and taxi cooperatives are exempt from this requirement.
The Royal decree was published in the gazette and will take effect on Dec. 2, 2025.
