Thai SME bad loans hit 10.92% as credit growth weakens

Credit quality among Thailand’s small and medium-sized enterprises and juristic persons has deteriorated, with non-performing loans (NPLs) reaching 10.92% of credit recorded by the National Credit Bureau (NCB) in June 2026.

Another 4.95% was classified as debt requiring special attention because of the risk that it could become non-performing. Combined, the two categories represented almost 16% of loans covered by the data.

At the same time, total credit to SMEs and juristic persons grew by only 0.5% year on year, underscoring the pressure on business borrowers as problem debt remains elevated.

Surapol Opasatien, an assistant executive at National Credit Bureau Co Ltd, outlined the figures in a Facebook post based on the bureau’s lending database for the second quarter.

The data, which exclude individual borrowers, showed outstanding credit of 2.54 trillion baht across about 1.1 million accounts as of June.

The latest figures add to evidence of weak credit conditions and rising repayment pressure among Thai SMEs.

NPL ratio reaches 10.92%

NPLs accounted for 10.92% of loans in the NCB dataset, with about 80,000 accounts classified as non-performing.

The ratio was 3.3% higher than a year earlier, according to the figures cited by Surapol.

The NCB ratio was also higher than the 9.5% reported by the Bank of Thailand because the bureau’s database includes lenders other than commercial banks.

Debt requiring special attention accounted for another 4.95% of credit, equivalent to about 121 billion baht.

Although the value of these loans fell by 9.3%, they still covered approximately 67,500 accounts, leaving a substantial group of borrowers at risk of slipping into NPL status.

Preventive restructuring rises to 330 billion baht

Debt restructuring after loans had already become non-performing totalled 222 billion baht, down 3.4%, covering about 46,700 accounts.

Preventive restructuring carried out before borrowers became non-performing rose more sharply.

The value of these arrangements reached 330 billion baht, up from 250 billion baht in June 2025, while the number of accounts increased to 85,900 from 64,700.

The increase indicates that more borrowers are being brought into restructuring before their repayment problems deteriorate into NPLs.

Surapol argued that early intervention remained important because businesses that were still capable of recovering could otherwise move into non-performing status.

Nearly 16% of credit carries elevated risk

Adding the 10.92% NPL ratio to the 4.95% of loans requiring special attention gives a combined share of about 16%.

The level is particularly significant against total year-on-year credit growth of only 0.5%.

SMEs and other business entities play an important role as employers and in distributing economic activity, meaning persistent liquidity and debt-servicing problems can feed through to investment, employment, consumption and broader economic activity.

The figures also point to the importance of preventing borrowers already showing repayment difficulties from becoming non-performing, rather than concentrating solely on restructuring debt after default.

Surapol said credit also needed to return to supporting businesses that remained viable, while problem debt should be addressed earlier to prevent financial pressure on companies from becoming a broader drag on the economy.