Section 224/1
Statutory text (Thai original)
แห่งประมวลกฎหมายแพ่งและพาณิชย์ซึ่งเพิ่มโดยพระราชกำหนดนี้ ให้ใช้แก่การคิดดอกเบี้ยผิดนัดในงวดที่ถึงกำหนดเวลาชำระตั้งแต่วันที่พระราชกำหนดนี้ใช้บังคับ
Verbatim from the Royal Gazette / Office of the Council of State
Firm annotation
Section 224/1 is part of Book 2 (Obligations) of the Thai Civil and Commercial Code. This entry is awaiting firm-authored commentary; the statutory text above is verbatim from the Office of the Council of State (OCS Krisdika) Thai source, with the English translation from the FAO/UN FAOLEX repository. Always rely on the Thai original for legal proceedings.
Why this matters in practice
Lawyers: In any instalment loan or hire-purchase dispute arising after 11 April 2021, calculate default interest only on the specific principal amount of the overdue instalment, not on the entire remaining loan balance. Draft or review loan agreements to ensure default-interest clauses comply — non-compliant clauses are void. Laypersons: If you miss one instalment payment, the lender can only charge default interest on that one missed payment's principal, not on the total amount you still owe.
Legislative history
Section 224/1 is a new provision, inserted into the Civil and Commercial Code by Emergency Decree on Revision of Interest Rate in Obligations B.E. 2564. It has no predecessor in the original Code. It applies to default interest on instalments falling due on or after 11 April 2021.
Frequently asked questions
If I miss one instalment on a loan, can the lender charge default interest on the full loan balance?
No, not for default interest accruing from 11 April 2021 onward. Under section 224/1 (inserted by Emergency Decree B.E. 2564), default interest on an instalment debt may only be calculated on the principal of the specific instalment that is overdue. Any contract term allowing the lender to charge default interest on the entire outstanding balance is void.