Signed loan contract but not received money yet, how to handle?

Loan contracts are one of the most common types of contracts today. Borrowing money, whether through an organization, an individual, or any other form, has unavoidable risks.

What is a loan agreement?

According to the 2015 Civil Code, property includes: objects, money, valuable papers and rights to use property. Property can be movable or immovable. Thus, money is a type of property.

Pursuant to Article 463 of the 2015 Civil Code, a property loan contract is an agreement between the parties, according to which the lender delivers property to the borrower. When the repayment term comes, the borrower must return to the lender the property of the same type in the correct quantity and quality and only has to pay interest if there is an agreement or if the law so provides. After the loan contract takes effect, the borrower will become the owner of the borrowed property from the time of receiving that property.

When does the loan agreement take effect?

According to Article 401 of the 2015 Civil Code, a loan contract comes into effect when:

- A legally concluded contract is effective from the time of conclusion, unless otherwise agreed or otherwise provided by relevant laws.

- From the time the contract comes into effect, the parties must perform their rights and obligations to each other as committed. The contract may be amended or canceled by agreement of the parties or by law.

Lender's obligations in a property loan contract

The obligations of the lender are stipulated in Article 465 of the 2015 Civil Code. Specifically:

- Deliver the assets to the borrower in full, with the correct quality and quantity at the agreed time and place.

- Compensate the borrower for damages if the lender knows that the property is not of guaranteed quality but does not notify the borrower, except in the case where the borrower knows but still accepts the property.

- The borrower shall not be required to return the property before the due date, except in the cases prescribed in Article 470 of this Code or other relevant laws.

Accordingly, the lender must deliver the assets to the borrower in full, with the correct quality and quantity at the time and place agreed upon in the loan contract.

What to do when you have signed a loan contract but have not received the money?

When you have signed a loan contract but have not received the money, you can refer to some of the following solutions:

With the lender disbursing late or before the disbursement deadline

- Borrowers proactively contact banks and financial companies that provide loans. The staff there will inform them of the specific reason and disbursement deadline.

- If the notice period is over, the borrower can go directly to the bank or finance company to cancel the contract.

- In case the lender refuses to cancel the contract and the borrower has specific evidence, he/she can seek a competent authority to request settlement and claim compensation for damages, if any.

By borrowing a large amount of money from the bank, the bank has to wait for capital mobilization.

This case is not uncommon. If at the time of signing and reviewing the loan contract, the bank does not have enough capital, the borrower must wait for the bank to mobilize enough capital to receive the money. If the waiting time is too long, the borrower can go directly to the bank to request to cancel the contract.

By leaving incorrect information on the receiving account or the lender transferring money to the wrong account

This situation poses a risk to both the borrower and the lender. In this case, the best solution is to contact the bank for timely support and resolution.

In case of fraudulent lender

In this case, the borrower should proactively contact or go directly to the nearest police station to report the fraudulent lender. The authorities will receive the information and handle it promptly.

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