NCB Reports Declining Bad Debt but Warns of Risks as 40% of Working-Age Population Lacks Credit Records
Thailand's household debt reached 13.6 trillion baht in Q1 2025, but the bigger concern is that 40% of working-age adults lack any credit history, limiting their access to formal loans and pushing them toward informal lenders. The National
The National Credit Bureau (NCB) reported that non-performing loans (NPL) fell to 9.3% in the first quarter of 2025, though debt restructuring accounts have increased to approximately 10%, signaling underlying problems persist. The bureau proposed amending credit information laws to enable credit cooperatives, student loan providers, and new lending services to contribute data to the system, enhancing risk evaluation, expanding credit access, and bolstering Thailand's long-term financial stability.
On June 29, 2025, TTB Analytics and NCB released findings under the theme "Good Credit, Good Life, Toward Better Financial Opportunities," emphasizing that building a positive credit history is essential for improving credit access and enabling financially disciplined individuals to receive fair financing costs.
Thailand's total outstanding debt reached 13.6 trillion baht, with the average Thai citizen holding four active loan accounts. NCB's managing director Laksamon Attapich noted that approximately 86% of Thai household debt data tracked by the Bank of Thailand forms NCB's database. As of the end of the first quarter 2025, total outstanding debt stood at 13.6 trillion baht across 98.7 million credit accounts, averaging four accounts per person.
The household debt database, covering 86% of the country's working-age population aged 20-60 (39.18 million people), shows that only 23.5 million people, or roughly 60%, have credit records in the system. This means over 40% of this demographic lacks credit history—a concerning gap that deprives them of financial credibility and potential access to institutional credit.
The real concern extends beyond debt levels to the lack of financial identity for millions in the credit system, limiting opportunities to build creditworthiness and restricting access to institutional loans when needed. While credit accounts continue growing, particularly after Shopee ecosystem lenders joined NCB as members, total outstanding debt has remained flat for over two years and begun declining slightly in early 2025, suggesting new lending consists mainly of small personal loans rather than large credit expansion.
Attapich emphasized that while overall debt growth has stalled and the household debt-to-GDP ratio is declining, this partly reflects economic expansion rather than resolved debt problems. Two critical issues warrant monitoring: public access to institutional credit and current debt quality. If those needing funds cannot access institutional credit, they may turn to informal lending, increasing household fragility long-term.
By the end of the first quarter 2025, NPL ratios fell to 9.3%, yet debt restructuring accounts rose to approximately 10%, indicating many borrowers still require assistance. Follow-up is needed to determine whether restructured accounts return to normal repayment or revert to delinquency.
Personal loans emerged as the most concerning credit category by type, followed by auto loans with some segments showing nearly 20% NPL ratios, while nano-finance remained relatively stable.
