Hi Lawyer, I intend to lend at interest, but my children said that when lending, I need to make a contract to borrow a property. Because my knowledge is limited, I hope a lawyer can help me. So about the matter “What is a property loan contract in Vietnam?” Let’s find out with LSX in the article below.
Legal grounds
- Civil Code 2015
What is a property loan contract in Vietnam?
According to Article 463 of the 2015 Civil Code, property loan contracts are as follows:
“Article 463. Property loan contract
Property loan contract is an agreement between parties whereby the lender delivers the property to the borrower; when it is due, the borrower must return to the lender property of the same type in the correct quantity and quality, and only pay interest if so agreed or prescribed by law.”
Accordingly, a property loan contract is an agreement between parties whereby the lender delivers the property to the borrower; when it is due, the borrower must return to the lender property of the same type in the correct quantity and quality and only pay interest if so agreed or prescribed by law.
Obligations of the parties in the property loan contract
As for the obligations of the parties in a property loan contract, which are specified in Article 465 of the 2015 Civil Code and Article 466 of the 2015 Civil Code, specifically:
“Article 465. Obligations of the lender
1. Deliver assets to the borrower in full, with the right quality and quantity at the agreed time and place.
2. To compensate the borrower for damage, if the lender knows that the property is not of good quality without notifying the borrower, unless the borrower knows and still accepts the property.
3. The borrower must not be required to return the property before the due date, except for the cases specified in Article 470 of this Code or other relevant laws.
Article 466. Borrower’s debt repayment obligation
1. Borrowers of money assets must pay in full when due; if the property is an object, it must return the object of the same type in the correct quantity and quality, unless otherwise agreed.
2. In case the borrower is unable to repay the object, it may pay in cash according to the value of the borrowed object at the place and time of repayment, if agreed by the lender.
3. Debt payment place is the place of residence or place of head office of the lender, unless otherwise agreed.
4. In case of an interest-free loan, but when due, the borrower fails to pay the debt or fails to pay it fully, the lender has the right to request interest payment at the interest rate specified in Clause 2, Article 468 of this Code on the amount of late payment corresponds to the time of late payment, unless otherwise agreed or otherwise provided by law.
5. In case of a loan with interest but when due, the borrower does not pay or does not pay in full, the borrower must pay interest as follows:
a) Interest on the principal at the interest rate agreed upon in the contract corresponding to the loan term but not yet paid; In case of late payment, interest must also be paid at the rate specified in Clause 2, Article 468 of this Code;
b) Interest on unpaid overdue principal equals 150% of the loan interest rate according to the contract corresponding to the delayed payment period, unless otherwise agreed.
Accordingly, the lender is obliged to:
– Deliver assets to the borrower in full, with the right quality and quantity at the agreed time and place.
– To compensate the borrower for damage, if the lender knows that the property is not of good quality without notifying the borrower, unless the borrower knows and still accepts the property.
– Do not require the borrower to return the property before the due date
Borrowers are obligated to:
– If the property is borrowed money, it must be paid in full when it is due;
– If the property is an object, it must return the object of the same type with the correct quantity and quality.
What is the interest rate in the property loan contract?
For the interest rate in the property loan contract specified in Article 468 of the Civil Code 2015, specifically:
“Article 468. Interest rate
1. The loan interest rate shall be agreed upon by the parties.
If the parties have an agreement on the interest rate, the agreed interest rate must not exceed 20%/year of the loan amount, unless otherwise provided for by other relevant laws. Based on the actual situation and at the proposal of the Government, the National Assembly Standing Committee shall decide to adjust the above interest rates and report to the National Assembly at the nearest meeting.
In case the agreed interest rate exceeds the limit interest rate specified in this Clause, the excess interest rate will not take effect.
2. In case the parties have an agreement on interest payment, but do not specify the interest rate and there is a dispute over the interest rate, the interest rate shall be determined equal to 50% of the limit interest rate specified in Clause 1 of this Article at time to repay the debt.”
In addition, the application, determination and handling of agreements and adjustment of interest rates in property loan contracts are guided by Articles 2, 5, 9, 10 of Resolution 01/2019/NQ-HDTP.
At the same time, in Clauses 4 and 5, Article 466 of the Civil Code 2015 stipulates the interest rate for borrowers when they do not pay or pay in full to the lender, specifically:
“Article 466. Borrower’s debt repayment obligation
[…]
4. In case of an interest-free loan, but when due, the borrower fails to pay the debt or fails to pay it fully, the lender has the right to request interest payment at the interest rate specified in Clause 2, Article 468 of this Code on the amount of late payment corresponds to the time of late payment, unless otherwise agreed or otherwise provided by law.
5. In case of a loan with interest but when due, the borrower does not pay or does not pay in full, the borrower must pay interest as follows:
a) Interest on the principal at the interest rate agreed upon in the contract corresponding to the loan term but not yet paid; In case of late payment, interest must also be paid at the rate specified in Clause 2, Article 468 of this Code;
b) Interest on unpaid overdue principal equals 150% of the loan interest rate according to the contract corresponding to the delayed payment period, unless otherwise agreed.
From the above grounds, in case you have an agreement on interest payment when a dispute occurs but do not agree on how much interest rate, the interest rate is determined by 50% of the limit interest rate, that is, equal to 50% of the limit interest rate. 10% of the late payment amount corresponding to the late payment period as prescribed in Article 468 of the Civil Code 2015.
Services of LSX
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, LSX’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all brand information of client LSX will be 100% confidential.
Please contact us immediately if you have any questions about “What is a property loan contract in Vietnam?”
Contact LSX
Finally, hope this article is useful for you to answer the question about “What is a property loan contract in Vietnam?” If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Please see more
- Auction of property required by law to be sold through auction in Vietnam
- How does the Vietnamese law regulate the relationship of a credit loan contract?
- What is the legal object of the loan contract in Vietnam?
Frequently asked questions
According to Article 469 of the 2015 Civil Code, a demand loan contract is performed as follows:
For a loan contract with no term and no interest, the lender has the right to reclaim the property and the borrower also has the right to repay the debt at any time, but must notify each other in advance a reasonable time, unless otherwise agreed.
For a loan contract with no term and interest, the lender has the right to reclaim the property at any time, but must notify the borrower a reasonable time in advance and be paid interest until the time of receiving the property back. ,
The borrower also has the right to return the property at any time and only has to pay interest until the time of repayment, but must also give the lender a reasonable time in advance.
According to Clause 5, Article 466 of the 2015 Civil Code, the loan interest rate in the case of a loan with interest but not being paid when due is as follows:
Interest on the principal at the rate agreed upon in the contract corresponding to the loan term but not yet paid; in case of late payment, interest must also be paid at an interest rate equal to 50% of the interest rate of 20%/year at the time of debt repayment;
Interest on unpaid overdue principal is equal to 150% of the loan interest rate according to the contract corresponding to the late payment period, unless otherwise agreed.
According to Clause 4, Article 466 of the 2015 Civil Code, the loan interest rate in case the loan has no interest but is not paid when due as follows:
In case the loan has no interest but when due, the borrower fails to repay the loan or fails to pay in full, the lender has the right to demand interest payment at an interest rate equal to 50% of the 20% interest rate per annum at the time of payment. owed on the amount of late payment corresponding to the period of late payment,
Unless otherwise agreed or otherwise provided by law.
Conclusion: So the above is What is a property loan contract in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
