How much you can borrow against Thai shares is set by the loan-to-value (LTV) ratio — the percentage of the shares' market value a lender will advance as cash. That percentage is not fixed: it depends on the specific stock's liquidity, volatility, free float, and how concentrated your holding is relative to normal trading volume. Because every SET- and mai-listed counter behaves differently as collateral, a meaningful LTV can only be issued after reviewing the actual ticker, the position size, and the structure you need. We typically return an indicative LTV within 2–3 business days.
Key takeaways
- LTV is the lever. Loan amount ≈ LTV × market value of the pledged shares.
- Liquidity matters most. A liquid SET50 name supports a higher LTV than a thin small-cap, because it can be managed if it has to be.
- Volatility, free float, and concentration all pull the LTV up or down.
- A conservative LTV protects you — it widens the buffer before any margin top-up is required.
- No generic number. We issue an indicative LTV only after reviewing your specific ticker, usually within 2–3 business days.
What LTV is, in one line
If your shares are worth THB 100 million and the LTV is 50%, you can borrow up to THB 50 million against them. The remaining value is the lender's cushion — the margin of safety that absorbs price moves while the loan is outstanding. The whole question of "how much can I borrow" reduces to "what LTV will this particular stock support." The glossary entry for LTV sets out the definition formally.
What drives the LTV on a Thai stock
No two SET- or mai-listed positions are valued the same way as collateral. These are the factors that move the number.
Liquidity (average daily trading value)
The single most important driver. A stock's average daily trading value (ADTV) tells the lender how easily a position could be managed in an orderly way if it ever had to be. A liquid SET50 or SET100 name with deep daily turnover supports a higher LTV than a thinly-traded counter where even a modest position represents many days of volume.
Volatility
The more a share price swings, the larger the cushion a lender needs. Higher volatility means a wider gap between market value and loan amount — a lower LTV — so that ordinary price moves do not erode the collateral buffer.
Free float
A larger, well-distributed free float generally means healthier, more reliable price discovery. A very tight float — common in founder- and family-controlled Thai companies — can make a stock harder to value as collateral, which tends to moderate the LTV.
Concentration vs. position size
It is not just the stock; it is your position in the stock. A holding that represents a large multiple of daily volume, or a meaningful slice of the free float, carries more concentration risk than the same THB value in a deeply liquid name. The larger your position relative to the market, the more conservative the LTV.
Board and NVDR status
Whether the shares sit on the local board, the foreign board, or are held as Non-Voting Depositary Receipts (NVDRs) affects how the collateral is positioned and how foreign limits apply. This is a structuring question that feeds into the terms — covered in depth in how foreigners borrow against Thai shares via NVDRs.
Tenor
The length of the loan matters too. A longer tenor gives more time for the price to move, which can argue for a more conservative LTV or specific structuring terms.
Margin and top-up mechanics
Because the loan is secured by a moving asset, the structure includes a margin mechanism. If the collateral value falls far enough that the buffer thins beyond an agreed level, a margin call may require you to top up — by posting additional collateral or paying down part of the loan — to restore the buffer. This is precisely why the starting LTV matters: a lower, more conservative LTV builds in a wider buffer from day one, so ordinary market noise is far less likely to trigger a call. Whether the loan is recourse or non-recourse also shapes what happens in a stress scenario, which we explore in recourse vs. non-recourse stock loans in Thailand.
| Driver | Supports a higher LTV | Pushes the LTV lower |
|---|---|---|
| Liquidity (ADTV) | Deep daily turnover | Thin, sporadic trading |
| Volatility | Stable price history | Large, frequent swings |
| Free float | Wide, well-distributed | Very tight, closely held |
| Position vs. volume | Small relative to ADTV | Many days of volume |
| Tenor | Shorter | Longer |
Why a conservative LTV protects the borrower
It can be tempting to chase the highest possible advance, but an aggressive LTV cuts both ways. A high LTV leaves a thin buffer, which means even a routine pullback can trigger a margin call at exactly the wrong moment. A conservative LTV does the opposite: it lets you draw the capital you need while keeping enough headroom that ordinary volatility does not disturb the loan. The right LTV is not the biggest number — it is the one that lets you sleep through a normal market.
Which stocks qualify, and what it costs
Not every Thai-listed share is eligible, and the eligible ones price differently. To see how qualification is assessed, read which Thai stocks qualify for a stock loan, and for the cost side — interest, fees, and how they relate to the LTV — see Thai stock loan interest rates and fees. For the instrument itself, our stock loans page and the process overview set out how a transaction comes together.
How Thailand Stock Loans sizes your loan
We do not quote a generic LTV, because a generic LTV would be meaningless. When you share your ticker, position size, and the structure you have in mind through our process, a principal reviews the specific stock — its liquidity, volatility, float, and how your holding sits against daily volume — and returns an indicative LTV and loan amount, typically within 2–3 business days. From there we refine the structure, including board and NVDR positioning and margin terms, before anything is documented.
This article is general information about how share-backed financing is sized in Thailand and is not legal, tax, or financial advice. Indicative LTV depends entirely on the specific security, position, and structure. Obtain advice from qualified Thai counsel and a financial adviser before acting.