Everything You Need to Know About Securities-Backed Lending in Thailand in 2025

Imagine you’ve built a solid investment portfolio over the years — shares in top companies, government bonds, or even blue-chip mutual funds. You’ve watched your assets grow, and you feel proud of your discipline. But now, an opportunity pops up — maybe a dream property on the coast of Phuket, an expansion for your business, or even a chance to invest in a startup.

There’s just one problem: most of your wealth is tied up in your investments, and selling them might trigger taxes, lose future returns, or disrupt your long-term plan.

That’s where Securities backed lending Thailand comes into play. In 2025, this form of financing is becoming one of the hottest tools for savvy investors in the country, allowing you to unlock liquidity without having to part ways with your prized assets.

Let’s dive deep into everything you need to know — from what it is, how it works, the current 2025 landscape, risks, and real-life scenarios to help you decide if it’s right for you.

1. What Is Securities-Backed Lending?

At its core, securities-backed lending (SBL) is a type of loan where your investment securities (like stocks, bonds, ETFs, or mutual funds) are used as collateral.

Instead of selling your assets to get cash, you pledge them to a lender — typically a bank, brokerage firm, or specialized financial institution — in exchange for a loan. This gives you immediate access to funds while keeping your investment portfolio intact.

In Thailand, Stock Loans Thailand is a commonly used term for the same concept, especially in investor and business circles. It refers to loans that are secured against publicly traded shares or other marketable securities.

Example Scenario: Let’s say you hold ฿10 million worth of shares in a top SET-listed company. You need ฿5 million for a business expansion. You could sell your shares, but that might incur capital gains tax or cause you to miss future dividends. With securities backed lending Thailand, you can borrow the ฿5 million against your shares, pay interest on the loan, and keep your investments in place.

2. Why It’s Trending in Thailand in 2025

Several factors are fueling the rise of securities-backed lending in Thailand this year:

a) Expanding Investment Culture

The Thai Stock Exchange has seen steady growth in retail investors. People are more financially literate, and portfolios have grown — making securities-backed loans more relevant.

b) Low Interest Rate Environment

While global rates have been volatile, Thai lenders offering Stock Loans Thailand still maintain competitive rates compared to unsecured personal loans or credit cards.

c) Demand for Flexible Financing

Businesses and individuals are seeking liquidity without disrupting investments. Entrepreneurs, property investors, and even high-net-worth retirees are using SBL for strategic purposes.

d) Regulatory Clarity

The Bank of Thailand and the Securities and Exchange Commission (SEC Thailand) have provided clearer frameworks for lending against securities, making the process safer for borrowers and lenders.

3. How Securities-Backed Lending Works in Thailand

Here’s a step-by-step look at how it typically unfolds:

1. Portfolio Evaluation – You approach a lender with your investment portfolio. They assess the type, value, and volatility of your securities.

2. Loan-to-Value (LTV) Ratio – The lender offers a loan based on a percentage of your portfolio’s market value. In Thailand, this is often between 50% and 70% depending on the asset.

3. Loan Agreement – Terms include interest rate, repayment schedule, and collateral conditions.

4. Pledging Securities – Your securities are transferred into a pledged account that the lender controls.

5. Loan Disbursement – Funds are released for you to use as you wish — investment, real estate purchase, or even working capital.

6. Repayment & Asset Return – Once you repay the loan and interest, your securities are released back to you.

   
   

4. Benefits of Securities-Backed Lending

Here’s why this financing tool has become a go-to for many Thai investors:

1. Liquidity Without Selling

You retain ownership of your assets, meaning you can still benefit from price appreciation and dividends.

2. Lower Interest Rates

Since the loan is collateralized, interest rates are typically lower than unsecured loans.

3. Flexibility of Use

Funds can be used for almost any purpose — business expansion, property investment, education, or even personal needs.

4. Tax Efficiency

Avoid triggering capital gains tax by not selling your investments.

5. Speed

Approval is generally faster compared to traditional mortgages or business loans, especially for high-net-worth individuals.

5. Risks You Must Consider

While the benefits are attractive, securities backed lending Thailand is not risk-free. Here’s what to watch out for:

a) Market Volatility

If the value of your securities drops significantly, the lender may issue a margin call, requiring you to deposit more securities or cash.

b) Forced Liquidation

Failure to meet a margin call can lead to your lender selling your securities at possibly unfavorable prices.

c) Interest Costs

While rates are lower than unsecured loans, they can still add up, especially if the loan term is long.

d) Asset Restriction

Pledged securities can’t be sold or traded until the loan is repaid.

6. Securities-Backed Lending vs. Other Loan Types

Feature	Securities-Backed Loan	Personal Loan	Mortgage Loan
Collateral	Stocks, bonds, funds	None	Real estate
Interest Rate	Low to moderate	High	Low
Approval Time	Fast	Moderate	Slow
Use of Funds	Flexible	Flexible	Real estate only
Risk	Market fluctuations	Credit risk	Property value drop

7. Who Is Using Stock Loans in Thailand in 2025?

The profile of borrowers has expanded beyond traditional high-net-worth investors:

• Entrepreneurs – Using Stock Loans Thailand to fund new ventures without liquidating investments.

• Property Investors – Leveraging their portfolio to secure down payments for condos or villas.

• Business Owners – Financing expansion or bridging cash flow gaps.

• Expats – Accessing liquidity for investments in Thailand without selling overseas holdings (subject to regulations).

8. The 2025 Regulatory Landscape

Thailand’s financial regulators have tightened certain rules to protect both lenders and borrowers:

• LTV Limits – Maximum borrowing ratios to prevent over-leverage.

• Eligible Securities – Only certain high-quality, liquid assets are accepted.

• Transparency Requirements – Lenders must disclose all fees, interest rates, and risks clearly.

• Risk Warnings – Mandatory risk disclosure about margin calls and asset liquidation.

These measures aim to ensure that securities-backed lending grows sustainably and avoids the pitfalls seen in some global markets.

9. Practical Tips for Borrowers in 2025

If you’re considering securities backed lending Thailand, keep these actionable tips in mind:

1. Borrow Less Than the Maximum

Just because you can borrow 70% doesn’t mean you should. Leave room for market fluctuations.

2. Understand Margin Calls

Ask your lender how much your portfolio would need to drop before a margin call is triggered.

3. Shop Around

Interest rates and terms vary widely between banks, brokerages, and private lenders.

4. Match Loan Term to Purpose

Short-term needs should be matched with short-term loans to avoid long interest payments.

5. Keep a Cash Buffer

Having liquid cash can help you meet margin calls without selling investments.

10. Real-Life Case Study

Case: A Thai businesswoman had ฿20 million in SET50 shares. She needed ฿8 million to open a boutique hotel in Chiang Mai. Selling her shares would have cost her in taxes and missed dividend payouts.

Solution: She used Stock Loans Thailand to borrow 60% of her portfolio’s value. The interest rate was 5% per annum, and she repaid the loan in two years after her hotel became profitable.

Outcome: She retained her shares, benefited from stock appreciation, and expanded her business successfully.

11. The Future of Securities-Backed Lending in Thailand

Looking ahead, securities-backed lending is set to grow even more in Thailand due to:

• Digital Lending Platforms – Making application and approval faster.

• Increased Investor Participation – More Thais are investing in stocks, bonds, and funds.

• Integration with Wealth Management – Banks are bundling SBL with investment advisory services.

• Regional Expansion – Thai lenders may offer cross-border SBL for ASEAN markets.

12. Final Thoughts

In 2025, securities backed lending Thailand isn’t just a niche financial product — it’s a mainstream strategy for investors, entrepreneurs, and high-net-worth individuals who want liquidity without liquidating assets.

Like any financial tool, it comes with its own set of risks and responsibilities. The key is understanding how it works, knowing your risk tolerance, and partnering with a reputable lender.

When used wisely, Stock Loans Thailand can be a powerful way to unlock your portfolio’s potential while keeping your investment strategy on track.