Section 653 — Loan over 2,000 baht — writing required
Statutory text (Thai original)
การกู้ยืมเงินกว่าสองพันบาทขึ้นไปนั้น ถ้ามิได้มีหลักฐานแห่งการกู้ยืมเป็นหนังสืออย่างใดอย่างหนึ่งลงลายมือชื่อผู้ยืมเป็นสำคัญ จะฟ้องร้องให้บังคับคดีหาได้ไม่[19] ในการกู้ยืมเงินมีหลักฐานเป็นหนังสือนั้น ท่านว่าจะนำสืบการใช้เงินได้ต่อเมื่อมีหลักฐานเป็นหนังสืออย่างใดอย่างหนึ่งลงลายมือชื่อผู้ให้ยืมมาแสดง หรือเอกสารอันเป็นหลักฐานแห่งการกู้ยืมนั้นได้เวนคืนแล้ว หรือได้แทงเพิกถอนลงในเอกสารนั้นแล้ว
Verbatim from the Royal Gazette / Office of the Council of State
English translation
A loan of money for a sum exceeding two thousand baht in capital is not enforceable by action unless there be some written evidence of the loan signed by the borrower. No repayment od a loan of money evidenced by writing may be proved unless there be some written evidence signed by the lender, or the document evidencing the loan has been surrendered to the borrower or cancelled.
This English translation is provided for reference only and has not yet been firm-verified — always rely on the Thai original.
Firm annotation
Section 653 is a critical evidentiary rule, not a formality requirement: the loan itself is valid orally, but enforcement in court requires written evidence. "Written evidence" can be a formal promissory note, a signed IOU, a bank transfer confirmation that names both parties and the amount, or even a LINE/email exchange where the borrower acknowledges the debt. The 2,000-baht threshold has been unchanged since 1925 — for any practical loan, written documentation is essential.
Why this matters in practice
Lawyers: The writing requirement under Section 653(1) is a condition of enforceability, not formation — the loan itself may be validly made orally, but it cannot be litigated without the written document. Section 653(2) creates a parallel rule for repayment: the borrower who repays must obtain written acknowledgment or reclaim the loan document, or the repayment cannot be proved if the lender later sues again. Laypeople: Always get a signed loan document when lending or borrowing money over 2,000 baht. If you repay, get a signed receipt or take back the loan document — otherwise you may not be able to prove you repaid.
Legislative history
Part of the original Civil and Commercial Code codification; no major subsequent amendment.
Supreme Court decisions interpreting this section
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Supreme Court Judgment No. 22631/2555 (2012)
Where a loan is evidenced in writing, repayment can only be proved by written evidence — oral testimony of repayment is insufficient.
Both defendants admitted executing the loan agreement but claimed they had repaid in daily instalments. Since repayment of a written loan can only be proved by written evidence under Section 653(2), the burden of proving repayment fell on the defendants, who could not discharge it by oral testimony alone.
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Supreme Court Judgment No. 7160/2551 (2008)
Actual repayment extinguishes the loan debt. The written evidence requirement of Section 653(2) affects how repayment can be proved, not whether the debt is discharged.
Actual payment of the debt extinguishes the obligation regardless of whether the loan document has been cancelled or returned. The requirement of Section 653(2) to produce written evidence of repayment goes to proof, not to the extinction of the debt itself.
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Supreme Court Judgment No. 3874/2549 (2006)
The writing requirement of Section 653(1) bars not only a claim on the loan but also its use as a defence or set-off.
The prohibition in Section 653(1) — that a loan exceeding 2,000 baht without written evidence cannot be sued upon — extends to raising the loan as a defence (set-off or counterclaim), not merely as a claim.
Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.
Frequently asked questions
I lent a friend 50,000 baht with no written agreement. Can I sue to get it back?
No. Under Section 653, a money loan exceeding 2,000 baht cannot be enforced by legal action without written evidence signed by the borrower. Without a signed loan document or IOU, your claim will fail in court even if you can prove the money was transferred.
I repaid my loan in cash but the lender won't give me the loan document back. What should I do?
Insist on a signed written receipt of payment, or ask the lender to write a cancellation note across the loan document. Under Section 653(2), you can only prove repayment of a written loan by written evidence signed by the lender, return of the loan document, or cancellation of it. Without one of these, the lender could potentially sue you again.