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

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

What is a loan agreement?

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

According to Article 463 of the 2015 Civil Code, a loan agreement is an agreement between the parties whereby the lender delivers property to the borrower. Upon repayment due, the borrower must return property of the same type, quantity, and quality to the lender, and only pays interest if agreed upon or stipulated by law. After the loan agreement takes effect, the borrower becomes the owner of the borrowed property from the moment of receiving it.

When does a loan agreement become effective?

According to Article 401 of the 2015 Civil Code, a loan agreement becomes effective when:

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

- From the moment the contract comes into effect, the parties must fulfill their rights and obligations to each other as agreed. The contract may be modified or canceled by mutual agreement of the parties or as stipulated by law.

Lender's obligations in a loan agreement

The lender's obligations 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 time and place as agreed.

- Compensation for damages to the borrower if the lender knows that the property is of substandard quality but fails to inform the borrower, except in cases where the borrower knows but still accepts the property.

- Borrowers are not allowed to request the return of property before the due date, except as provided in Article 470 of this Code or other relevant laws.

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

What should you do if you've signed a loan agreement but haven't received the money?

When faced with a situation where you've signed a loan agreement but haven't received the money, you can refer to some of the following solutions:

This occurs when the lender is slow in disbursing funds or the disbursement deadline has not yet arrived.

- Borrowers should proactively contact the bank or financial company that provided the loan; the staff there will explain the reason and the specific disbursement deadline.

- If the deadline as announced is exceeded, the borrower can go directly to the bank or financial company to cancel the contract.

- If the lender refuses to cancel the contract and the borrower has concrete evidence, they can seek resolution from the competent authority and claim compensation for damages, if any.

Because the bank borrowed a large sum of money, it had to wait to raise capital.

This situation is not uncommon. If, at the time of signing and reviewing the loan contract, the bank does not have sufficient capital, the borrower must wait for the bank to raise the full amount before receiving the money. If the wait is too long, the borrower can go directly to the bank to request contract cancellation.

This can happen if the recipient's account information is incorrect or the lender transfers money to the wrong account.

This situation presents a risk for both borrowers and lenders. In this case, the best course of action is to contact the bank for assistance and prompt resolution.

In the case of fraudulent lending by the 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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