What are the conditions to mortgage land at the bank?

* Property conditions:

Clause 1, Article 168 and Article 188 of the 2013 Land Law, in order for land use rights to be mortgaged, the following conditions must be met:

- Have a certificate of land use right (Red book or pink book).

- The land is not disputed.

- Not in a state of distraint of land use rights to secure judgment enforcement.

- Land in use period.

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* Conditions when borrowing capital:

In order for the bank to approve the loan after the borrower applies for a mortgage, the borrower must also meet the conditions mentioned in Article 7 of Circular 39 of the State Bank of Vietnam, including:

- The borrower is an individual who is at least 18 years old, has full civil act capacity, or from 15 years old - less than 18 years old and has not lost/restricted his civil act capacity; if it is a legal person, it must have civil legal capacity.

- Borrowing capital for lawful purposes.

- The capital use plan must be feasible.

- Customers are required to have financial capacity to repay the bank's borrowed debts.

Thus, when borrowing capital in the form of mortgage of land use rights, the property conditions and the borrower's conditions must meet the bank's conditions.

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