Car loan interest rates in Thailand, for all banks in 2024

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Buying a car, whether new or used, would always involve a car loan. Coming together with a car loan is known as “interest”. Of course, each bank would have their different terms & conditions and interest rates. 

Before deciding to buy a car, you must always plan and calculate the expenses carefully before purchasing. As this is considered a large debt that can take a long time to repay, if you did not plan it out wisely, it may result in you being unable to make the payments in due time, and you would have to sell the car in the end. One of the things one must consider is “car loan interest”. Let us take a look at how to calculate it. 

How to calculate car loan interest:

(Loan Amount x Interest Rate x Loan Period) / 100

Things to note about car loan interest rates: 

  • Car interest rates for new cars will only change for personal car purchases. Changes would include the new interest rate, prepayment discounts, contract cancellation, and late payment interest. 
  • The ceiling for new car interest rates must not exceed 10% per year. For used cars, it must not exceed 15% per annum, and for motorcycles, it shall not exceed 23% per year for all banks. This may be adjusted to increase or decrease every 3 years depending on the conditions of the economy.
  • The bank will offer a discount on the interest rate for new cars if you want to close the account early.
    • If you pay no more than ⅓ of the instalments as specified in the contract, the bank will offer you a discount on the interest rate of not less than 60% of the interest that has not yet reached the due date.
    • If you had paid ⅓ but not more than ⅔ of the instalments as specified in the contract, the bank will offer a discount on the interest rate of not less than 70% of the interest that has not yet reached the due date. 
  • If the buyer wants to cancel the contract, the buyer is only     obliged to pay for the principal amount. 
  • If the buyer defaults on payment, the bank is allowed to charge a penalty of an interest not exceeding 5% per year, calculated based on the amount due for that instalment. 
  • Interest rates for new cars are lower than used cars.
  • Car loan interest rates are fixed, so no matter how much you pay off, the interest rate will remain the same. 
  • Refinancing can aid in reducing car loan interest rates. 

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Compilation of car loan interest rates in 2024 across Thai banks

Tisco Bank

  • New car interest rate: 3.00% - 5.00% per year or 5.67% - 9.24% per year (effective rate)

Thai Military Bank (TMB)

  • Fixed new car interest rate: 2.75% - 5.60% per year and (effective) interest rate: 5.21% - 10.00% per annum

Krungsri Ayutthaya Bank

  • Fixed new car interest rate: 2.80% - 8.00% per year and effective interest rate: 5.73% - 15.81% per year

Siam Commercial Bank (SCB)

  • New car interest rate (fixed) and effective interest rate are 5.87% and 10% respectively.

In conclusion, each bank has its own conditions and car loan interest rates. Therefore, it is important to consider and compare between the options to decide which one is the most suitable for you.

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