Glossary of Loan

A vehicle used for transporting animals and goods, available in various types including pickup trucks, box trucks, liquid tankers, hazardous material trucks, special purpose trucks, trailers, semi-trailers, long material semi-trailers, and tow trucks.

Trucks manufactured and sold directly from the factory with brand stamps, such as HINO, ISUZU, SCANIA, FOTON, UD TRUCKS, FUSO, TATA.

Used trucks created by assembling various parts together at local garages in Thailand. Garages assemble the truck head, engine, chassis, transmission system, or gearbox, where each component may come from different sources or different brands, but can be assembled into one functional truck.

A document that permits the use of vehicles for transportation and commercial purposes. This is a required document for those operating freight transportation businesses.

A loan secured by truck registration. Truck owners can obtain this loan to use the money for expenses or to supplement liquidity while still being able to possess and use the truck for business purposes. Can be repaid in installments for up to 60 months (terms and conditions as specified by the company).

A hire-purchase type loan intended for buying and selling used trucks, which differs from truck registration loans where existing truck registration documents are used as collateral for borrowing.
If you're interested in buying or selling used trucks, Ngern Tid Lor offers truck buy-sell loans through hire-purchase agreements. Easy to buy, quick to sell, accepting trucks up to 25 years old, with comfortable installment payments up to 60 months (terms and conditions as specified by the company). Click for details

Costs for document verification, processing fees, and other necessary expenses that financial institutions charge before loan approval. Currently, Ngern Tid Lor does not charge any advance processing fees.

The practice of dividing truck insurance premiums, which are a large sum, into installments and combining them with the truck buy-sell hire-purchase loan amount in each installment as a single payment. This helps ease the burden of paying large insurance fees for customers applying for truck registration loans.

A type of loan that uses vehicle registration documents as collateral for debt repayment. The advantage is that you can still use your vehicle normally as the owner without having to leave it with the lender. Financial institutions or loan providers will process contracts and documents for you to transfer the registration in advance as collateral, and will keep the vehicle registration book as security until you complete all installment payments. There will be no title transfer or change of ownership if you make regular payments according to the contract. Interested in vehicle registration loans

A booklet used to record details of each vehicle, such as license plate number, chassis number, engine number, registration year, owner's rights, ownership history, tax payment history, and more. If you want to learn more about vehicle registration books, read here: 5 Things You Should Know About Vehicle Registration Books

The delivery of vehicle registration to a financial institution along with preparing a power of attorney to change the vehicle owner's name. Ownership of the vehicle will only transfer to the financial institution if the borrower defaults on debt payments to the point of asset seizure. This differs from vehicle loans with direct title transfer, where the vehicle owner must transfer ownership to the lender immediately upon borrowing, and must personally go to the Department of Land Transport for the transfer, which incurs additional transfer fees.

A person who must sign a guarantee contract for the vehicle loan borrower to certify that this person will be able to repay the debt according to the contract. If the loan applicant defaults on debt payments or cannot be contacted, the financial institution or loan provider will proceed to collect the debt from the guarantor instead.

The loan amount you will receive from applying for a loan using vehicle registration documents as collateral. Financial institutions or loan providers will assess the loan amount based on the brand, model, and condition of your vehicle.

The amount of money you must repay to the financial institution or loan provider every month as agreed in the contract. The installment payment consists of principal and interest as determined by the financial institution or loan provider.

The date when installment payment is due. If payment is made after the date specified in the loan contract, you may have to pay additional fees or penalties on top of the regular installment payment, as prescribed by law.

Additional costs on top of the monthly installment payment if you are overdue in debt repayment beyond the period agreed in the contract. Collection costs are calculated as prescribed by law. You can learn more here.

Life insurance that protects the loan applicant during the loan holding period. If a serious event occurs that causes the loan applicant to become disabled or die, the insurance company will pay the remaining installments, ensuring the debt burden doesn't fall on those left behind. For those interested in applying for vehicle registration loans without requiring a guarantor, plus the option to add loan protection insurance to prevent debt from becoming a burden on family members.

Money or a certain amount of assets under contractual obligations between two or more parties for borrowing and repayment with specified terms. Debt may arise from borrowing money, purchasing goods or services on credit, or through installment payments.

Borrowing and lending money where the lender is not registered as a financial institution under the supervision of the Bank of Thailand. This results in interest rates and various conditions depending on the lender's discretion, which are often higher than what is legally prescribed or set by the Bank of Thailand. This leads to problems where debtors are exploited and taken advantage of through unfair loan contracts. (You can check interest rates set by the Bank of Thailand here.) If you don't want to face unfair contract problems but need urgent money, consult Ngern Tid Lor here.

Documentation used as evidence for lending between the lender and borrower, stating the loan amount, interest rate calculation method, and repayment period. In informal loan contracts, there is often no specified period or clear interest rate, leading to problems with floating interest. Informal loan contracts often don't state the true loan amount and don't provide the borrower with a copy of the loan contract as evidence.

The amount that must be paid in installments each month, calculated from the loan amount, interest rate, and loan period. Informal loans often don't specify the installment amount to be paid each period, the payment date, or how much of the installment goes toward principal versus interest.

Lending where the debtor must pay installments daily. The borrowed money is not received in full, as interest or fees are deducted first. Most informal lenders require debtors to pay daily for 25 or 45 days after receiving the loan, depending on the loan amount, to confuse debtors about the actual monthly interest percentage.

Lending where the debtor must pay installments monthly. This is commonly encountered in cases where borrowers have monthly regular income and must leave collateral with the creditor, such as ATM cards for salary deposits, cars, motorcycles (which must be parked), or other assets that the lender can seize. The borrower can only reclaim these when the principal and interest are fully repaid.

A form of interest collection for informal loans where, once money is borrowed, the borrower must pay interest daily or monthly as agreed. The principal cannot be paid in installments. The debt only ends when the borrower returns all the principal. This term is encountered together with 'daily loans' or 'monthly loans,' where the debtor is charged interest by the creditor every day or month until they can find money to repay the full principal. The floating interest paid by the debtor to the creditor is not deducted from the borrowed principal.

Example of daily loan: Ms. A borrows 10,000 baht through an informal loan and must pay 2% daily interest, or 200 baht per day.

After 30 days, if Ms. A cannot find 10,000 baht to repay... this means Ms. A has paid 6,000 baht in interest to the creditor (from 200 baht daily interest x 30 days). This amount will not be deducted from the 10,000 baht principal.