BOT extends 8% minimum credit card payment relief until the end of 2026
Bank of Thailand (BOT) has extended the 8% minimum credit card payment measure until December 31, 2026, to help vulnerable debtors, allowing those struggling to pay to restructure their debt into a long-term loan.
- The Bank of Thailand has extended the reduced minimum credit card payment rate of 8% until the end of 2026, pushing back the original deadline of December 31, 2025.
- This measure is aimed at assisting vulnerable debtors whose incomes have not fully recovered, thereby impacting their ability to repay debt.
- To incentivize faster repayment, debtors who pay the 8% minimum or more will receive a quarterly cashback equivalent to a 0.25% interest reduction on their outstanding balance.
- For those unable to meet the 8% minimum, an option is available to restructure the debt into a term loan with installment payments to avoid default.
The BOT has consistently implemented financial measures to alleviate household debt issues, including credit card debt.
However, there are still vulnerable debtor groups in need of further assistance, as their incomes have not fully recovered, which may impact their liquidity and debt repayment ability.
As a result, the BOT has decided to extend the credit card debt relief measures until the end of 2026, instead of the original deadline of December 31, 2025. The details are as follows:
- The minimum payment rate for credit cards will remain at 8% temporarily, in line with the current economic situation. The BOT will closely monitor and assess the effectiveness of this measure to determine an appropriate minimum payment rate for the future.
- Debtors who make minimum payments of 8% or more will receive a cashback equivalent to a 0.25% reduction in the outstanding balance's interest, refunded every three months. This aims to encourage quicker debt settlement and reduce interest burdens.
- Debtors who cannot meet the 8% minimum payment can restructure their debt before it becomes non-performing by converting their credit card debt into a term loan, which allows for instalment payments. These debtors will still have access to liquidity from the remaining credit card limit.
Additionally, the BOT requires credit card companies to offer further benefits to debtors, such as interest rate reductions, to minimise the risk of debt becoming non-performing.
The BOT also has other measures to assist debtors who cannot meet the 8% minimum payment, including those who have already become non-performing.
These measures include debt restructuring before and after it becomes non-performing at least once, under the Responsible Lending guidelines, as well as the Debt Clinic and "Clear Debt, Move Forward" programs.
The BOT will continue to monitor the effectiveness and side effects of these measures and will adjust them as necessary based on the situation.
