Semi-formal loans (e.g., from cooperatives, village funds) and informal loans (e.g., from moneylenders, loan sharks) remains a key component of household and SME finance in Thailand. In the absence of comprehensive administrative data, the PIER Rural Household Survey estimates that up to 86% of rural households hold such loans. The welfare implications of these credit sources remain ambiguous. On one hand, they may bridge access gaps for those excluded from formal finance allowing households to smooth consumption and invest; on the other, their absence from credit registries may enable overborrowing, fuel debt revolving behavior, and complicate debt restructuring efforts. A deeper understanding of the prevalence, intensity, and roles of semi-/informal credit is essential for shaping a more inclusive and resilient financial system.

1. Innovative approach to measuring the prevalence and intensity of semi-formal and informal lending among Thai households and SMEs.
2. The potential welfare and economic impacts of semi/informal loans and mechanisms through which these loans could perpetuate debt traps?
3. Structural and institutional factors driving reliance on semi-/informal lending, and implications for designing financial systems that better serve underbanked and unbanked populations.