The process of getting small loans in Thailand is generally a complicated one. You will have to meet a number of small loan requirements to take out a personal loan. The requirements for a personal loan keep on fluctuating depending on what loan product you want. Among these fluctuating factors for small loan eligibility could be a minimum credit score. And sometimes, it has a lot do with what exactly you are after and with your situation.
But in most cases, the lender will at least check your credit score especially for the vast majority of personal or small business loans. Credit scores in Thailand are a vital factor in the small loan underwriting process, because they help in determining how dependable a borrower really is. A good credit score indicates that the borrower is dependable and is more likely to repay the loan as scheduled. The more credible the borrower of a small loan, the less risk that particular borrower poses to the lender.
A bad credit score in Thailand could be an indication that you are not a trustworthy borrower. So, business owners who have lower credit scores in Thailand might have a tougher time to secure the loans they need. Actually, they could be shut out of certain types of small loans entirely.
But every lending institution and every small loan type will typically require a different minimum credit score in Thailand to consider the eligibility of a borrower. With that in mind, it’s important for every individual to ensure that their credit score is high.
Credit score in Thailand and small business loans
Credit score is a major factor in determining whether or not a business loan should be granted. If you have been in business for only few months, you will not have a business credit score because Thailand credit score agencies don’t yet have complete or enough information about how that your business manages its debt. Instead, your lenders will take a look at your personal credit score in determining if you are qualified to be given the loan for your business.
In general, credit unions and banks in Thailand want to see a certain personal credit score in order to approve you for a loan. Typically, traditional lenders usually look for a minimum personal credit score of about 650 before they can approve you for a small loan. There are some lenders who require a minimum credit score of 680.
But if you have been in business for one year or more, lenders will consider your business credit score and personal credit score to determine if you qualify for a small business loan. Because you are looking for a business loan, lenders will tend to focus more on your business credit score and other financial indicators such as the receivables and revenues of the business.
Check your credit score today and know how well you are doing and ensure that you build it so that the score remains impressive because you might need a small loan at any time.