What are the borrower's obligations to the lender under the latest regulations?
What are the obligations of borrowers to lenders under the latest regulations? The concern of Ms. Le Thi Thao (Cua Lo ward, Nghe An).
Reply: Pursuant to the provisions of 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 property of the same type in the correct quantity and quality and must only pay interest if there is an agreement or if the law so provides.".
According to Article 466 of the 2015 Civil Code, the borrower has the following obligations:
- The borrower of money must repay the full amount when due; if the property is an object, the borrower must return an object of the same type, quantity, and quality, unless otherwise agreed.
- In case the borrower cannot return the item, he/she can pay in cash according to the value of the borrowed item at the place and time of repayment, if agreed by the lender.
- The place of repayment is the place of residence or head office of the lender, unless otherwise agreed.
- In case of an interest-free loan, if the borrower fails to repay or does not repay in full when due, the lender has the right to request payment of interest at the interest rate prescribed in Clause 2, Article 468, Civil Code 2025 on the overdue amount corresponding to the overdue period, unless otherwise agreed or otherwise provided by law.
- In case of a loan with interest, if the borrower fails to repay or does not repay in full when due, the borrower must pay interest as follows:
+ Interest on the principal according to the interest rate agreed in the contract corresponding to the loan term that has not been paid by the due date; in case of late payment, interest must also be paid according to the interest rate prescribed in Clause 2, Article 468, Civil Code 2025;
+ Interest on overdue principal is equal to 150% of the loan interest rate according to the contract corresponding to the late payment period, unless otherwise agreed.
Thus, the borrower is obliged to pay the full amount when due. In case of a loan with interest, if the borrower does not pay or does not pay in full when due, the borrower must pay interest as follows::
+ Interest on the principal according to the interest rate agreed in the contract corresponding to the loan term that has not been paid by the due date; in case of late payment, interest must also be paid according to the prescribed interest rate;
+ Interest on overdue principal is equal to 150% of the loan interest rate according to the contract corresponding to the late payment period, unless otherwise agreed.