Currently, the Financial Technology (FinTech) company that serves P2P Lending has experienced significant development in Thailand. Peer-to-Peer (P2P) Lending is a company that brings together creditors and debtors on one platform. The P2P Lending that does not involve the role of the bank or government in providing loan services; the Thai government only supervises and has the right to provide various sanctions if the companies make an attempt to violate the law.

How does it work?

P2P lending is a platform where debtors and creditors meet. The company only provides containers; all money lent to debtors comes from creditors who are members of the platform. It's like you borrow other people's money that you don't know through an application.

The Thai government bans fintech-base lending platforms to provide loans to its users. This also applies to all similar companies in all countries. This is done to distinguish between banks and fintech lending. Fintech lending has a simpler mechanism than banks. The entire process will be carried out online. In addition, the process is also relatively faster. But you need to know that fintech lending companies enforce stricter regulations regarding loan disbursement; not everyone can get a loan from fintech lending companies.

The companies will choose those who are truly clean and never have a bad financial record, especially those relating to previous loans. When your data shows that you have had a problem with a previous loan repayment, chances are that you will not be able to get a loan from fintech lending.

Government rules regarding fintech lending

The Thai government is known to have made a series of special rules regarding fintech lending. With the increasing number of P2P lending companies that register, the government only gives licenses to companies that have been established for 2 years and are estimated to have assets of 4,500,000 baht. This rule is made to improve the security of users.

The government also limits the maximum loan amount of 20,000 baht. This is done, once again, to prevent the debtor from attempting to reduce the level of bad credit. In addition, each company must report each creditor's data to the government. This is done to avoid money laundering. The government also applies rules regarding the amount of interest. The government regulates that fintech companies may only give interest of less than 20% per year. Although this figure is higher than bank interest, it does not dampen the interest of users. The users assume that the interest is still within a reasonable threshold when compared to the easy way they get a loan.

At present, Thailand has recognized 30 fintech lending companies and this number is expected to increase in 2019. The high demand of the people and the ease of obtaining loans make this industry grow very fast. In addition, the government considers that this is an innovation that will greatly help the Thai community. With the development of existing technology, this kind of industry does not seem to be stalled and will become an important part of Thai people's lives. Read more at

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