Shall persons under 18 years of age be eligible for concluding loan contracts in accordance with Vietnam’s regulation?

Hello Ms. Han, LAWNET would like to answer your question as follows:

1. Conditions for effective loan contracts

Pursuant to Article 117 of the Civil Code 2015 of Vietnam on conditions for effective civil transactions:

Firstly, a civil transaction shall be effective when it satisfies all of the following conditions:

- Participants in the transaction have legal personality:

+ The legal personality of a natural person is his/her capability to have civil rights and civil obligations.

+ All individuals shall have the same legal personality.

+ The legal personality of a natural person commences at birth and terminates at death.

- Legal capacity in conformity with such transaction:

+ The legal capacity of a natural person is his/her capability to establish and exercise civil rights and perform civil obligations through his/her acts.

- Participants in the transaction act entirely voluntarily;

- The purpose and contents of the transaction are not contrary to the law and/or social ethics.

Secondly, the forms of civil transactions shall be the conditions for its effectiveness in cases where it is so provided for by law.

2. Shall persons under 18 years of age be eligible for concluding loan contracts?

Persons under 18 years of age when entering into a civil contract will be based on their age as prescribed in Article 21 of the Civil Code 2015 of Vietnam:

- Child under 06 years of age: His/her legal representative shall establish and perform his/her civil transactions.

- Persons from 06 to under 15 years of age: Must have the consent of his/her legal representative to enter in and perform civil transactions, except for civil transactions which are performed for the purpose of meeting the needs of daily life suitable for the age group.

- Persons from 15 to under 18 years of age: Entitled to enter in and perform civil transactions by himself/herself, except for civil transactions related to real estate, movables required registration and other civil transactions as prescribed by law that are subject to the consent of his/her legal representative.

Contract for the loan of property means an agreement between parties whereby a lender delivers property to a borrower. When the loan falls due, the borrower must repay the lender property of the same type in accordance with the correct quantity and quality, and must pay interest if so agreed or so provided by law.

Therefore, persons under 18 years of age are entitled to enter in and perform loan transactions by himself/herself provided that he/she is from 15 to under 18 years of age, meeting all conditions mentioned in section 1 and is not a person with limited cognition or behavior control, and the transaction does not violate the prohibition of the law.

Regards!

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