Home & Business Borrowers Must Know! What’s the Difference Between MRR, MLR, and MOR? (2026 Easy Guide)
Decoding Floating Interest Rates: How to Choose a Loan Without Letting Interest Spiral Out of Control
When you walk into a bank to apply for a loan, the first terms a loan officer will mention are Floating Rates like MRR, MLR, and MOR. While all three fluctuate according to the Bank of Thailand's policies, they have completely different "target groups" and "costs."
Choosing the wrong type or not understanding their origins could mean shouldering an unnecessary interest burden. Let’s look at the differences.
1. MRR (Minimum Retail Rate)
Nickname: The "People’s Rate" (Home buyers must know this).
What is it?: The interest rate banks charge Prime Retail Customers.
Who is it for?
Home Loans (Houses, Condos).
Personal Loans.
Credit Cards.
Why it matters: Most home loans in Thailand use this rate as a base for calculation after the fixed-rate promotion expires (usually after the first 3 years). Example: Year 4 interest = MRR - 2.00%.
Caution: By nature, MRR is usually slightly higher than MLR and MOR because banks view the risk of retail customers as higher than that of large businesses.
2. MLR (Minimum Loan Rate)
Nickname: Long-term Business Rate.
What is it?: The interest rate banks charge Prime Large Customers for Term Loans (loans with a fixed time limit).
Who is it for?
Entrepreneurs borrowing to expand factories or buy machinery.
Long-term loans with clear collateral.
Note: Some banks may use MLR for home loans, though this is less common than MRR.
Key Highlight: This is usually the lowest interest rate among the three because banks view this group of customers as highly stable with low risk.
3. MOR (Minimum Overdraft Rate)
Nickname: Working Capital Rate (OD).
What is it?: The interest rate banks charge Prime Large Customers for Overdraft (OD) facilities.
Who is it for?
Business owners needing short-term liquidity.
Preventing bounced checks or needing emergency business reserve funds.
Those using OD limits to withdraw cash via passbooks.
Observation: MOR is usually higher than MLR because it focuses on convenience, speed, and flexibility, lacking the fixed principal repayment schedule of a Term Loan.
Quick Comparison Table: MRR, MLR, MOR (2026 Edition)
Interest Type | Stands For | Main Target Group | Used For | Approx. Rate Level* |
MRR | Minimum Retail Rate | Retail Customers (Individuals) | Home loans, Credit cards, Personal loans | Highest (6.xx% - 7.xx%) |
MOR | Minimum Overdraft Rate | Large Businesses (Liquidity focus) | Overdrafts (OD) | Medium (6.xx% - 7.xx%) |
MLR | Minimum Loan Rate | Large Businesses (Long-term) | Business Investment, Factory Construction | Lowest (5.xx% - 6.xx%) |
*Note: Interest rates depend on each bank's announcements and the economic situation at that time.
Techniques for Choosing a Worthwhile Loan (Interest Perspective)
1. For Home Loans:
Focus on the "Minus" (-) margin after the MRR. The higher the negative number, the better.
Example: Bank A offers MRR - 2.00% vs. Bank B offers MRR - 2.50%. (Assuming MRR is equal, Bank B is cheaper).
2. For Business Loans:
Long-term: If borrowing to build a building or buy machinery, request a Term Loan to get the MLR, which is cheaper.
Short-term: If borrowing for circulation/liquidity, request an OD (MOR). Even though the rate is higher, interest is calculated only on the amount actually withdrawn/used.
3. Follow the News:
All three rates are "Floating." If the MPC (Monetary Policy Committee) announces a policy rate hike, these numbers will adjust upward immediately, causing your home or business installment payments to rise.
Conclusion
Whether you are a dreamer wanting a home or a business owner, understanding the differences between MRR, MLR, and MOR is fundamental financial literacy. It helps you choose loan products that match your objectives and can save you hundreds of thousands—or even millions—in interest over the life of the contract.
