Book 1 — General Principles

Section 7

Default statutory interest rate cut from 7.5% to 3% per year; the Ministry of Finance may adjust it by Royal Decree every 3 years.

Statutory text (Thai original)

ถ้าจะต้องเสียดอกเบี้ยแก่กันและมิได้กำหนดอัตราดอกเบี้ยไว้โดยนิติกรรมหรือโดยบทกฎหมายอันชัดแจ้ง ให้ใช้อัตราร้อยละเจ็ดครึ่งต่อปี

Verbatim from the Royal Gazette / Office of the Council of State

English translation

Whenever interest is to be paid, and the rate is not fixed by a juristic act or by an express provision in the law, it shall be seven and a half per cent per year.

This English translation is provided for reference only and has not yet been firm-verified. Always rely on the Thai original.

Firm annotation

Section 7 is part of Book 1 (General Principles) 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.

High importance

Why this matters in practice

For lawyers: always check whether the obligation arose before or after 11 April 2021. For pre-2021 debts, courts may apply 7.5% for the period before that date and 3% thereafter. Draft contracts should specify a rate expressly to avoid this default. For laypeople: if you lend money without agreeing on an interest rate, the borrower owes you only 3% per year; to earn more you must put the rate in writing.

Legislative history

The original CCC rate was 7.5 percent per year. Emergency Decree on Amendments to the Civil and Commercial Code B.E. 2564 (in force 11 April 2021) reduced the statutory rate to 3 percent per year and added a Royal Decree review mechanism. Practitioners must distinguish the old 7.5% rate (applicable to obligations arising before 11 April 2021) from the current 3% rate.

  • interest rate
  • default interest
  • statutory rate
  • 3 percent
  • monetary obligation

Cited in 309 Supreme Court decisions (1950 to 2026)

Selected citing decisions

This list is selected automatically, weighted towards judgments that turn on this section rather than ones that merely recite it when passing sentence. It has not yet been reviewed by the firm.

Most often cited alongside

Sections that appear in the same judgments as this one most often. The figure is the number of decisions.

Counted across the firm's corpus of 83,772 Supreme Court decisions, 1921 to 2026. These figures are computed by us and are not official court statistics.

Frequently asked questions

What interest rate applies if my loan contract is silent on the rate?

Under section 7, the statutory rate of 3 percent per year applies (following the Emergency Decree of B.E. 2564, in force from 11 April 2021). Before that date the rate was 7.5 percent. Always specify the rate in writing if you wish to charge more.

Can the 3 percent statutory rate be changed in the future?

Yes. The amended section 7 expressly allows the rate to be raised or lowered by Royal Decree to reflect economic conditions. The Ministry of Finance must review the rate ordinarily every three years, benchmarking it against the average of commercial bank deposit and lending rates.

Cite this section

  • Plain citation Civil and Commercial Code, s. 7 (Thailand)
  • Academic citation Civil and Commercial Code (Thailand), s. 7. ThaiLawOnline, https://www.thailawonline.com/thai-civil-code/section-7/ (accessed 8 August 2026).
  • Thai citation ป.พ.พ. มาตรา 7
  • Permalink https://www.thailawonline.com/thai-civil-code/section-7/
  • Embed on your site <blockquote cite="https://www.thailawonline.com/thai-civil-code/section-7/"><p>Whenever interest is to be paid, and the rate is not fixed by a juristic act or by an express provision in the law, it shall be seven and a half per cent per year.</p><footer>Civil and Commercial Code, s. 7 (Thailand) — <a href="https://www.thailawonline.com/thai-civil-code/section-7/">ThaiLawOnline</a></footer></blockquote>

The Thai text is authoritative. The English is an unofficial translation by ThaiLawOnline, free to reuse with attribution.

This is educational reference, not legal advice. Consult a qualified Thai lawyer before relying on any provision.

Scroll to Top
WhatsApp LINE Call Book