Does a loan certificate have legal effect?

By itself, a loan certificate does not have the enforceability to directly execute against the debtor's property; however, it constitutes strong evidence proving the fact of a monetary loan for consumption.

Therefore, when you file an application for a payment order or a civil lawsuit, it can be used by the court as a key piece of material supporting the creditor's claim and can work in your favor.

If the loan certificate is notarized or a certificate of the registered seal is attached, its public credibility can be greatly strengthened.

This has the advantage that enforcement can be carried out quickly when the debtor does not voluntarily repay.

In addition, a loan certificate must clearly state essential information such as the parties' personal details, the loan amount, the interest agreement, and the repayment deadline.

Therefore, so that the legal effect of the loan certificate may be recognized as evidence, please carefully check whether these matters are stated.

In addition, one point to note is that, in order to protect your rights, you must exercise the claim within the 10-year extinctive prescription.

To sum up, although a loan certificate alone has no enforceability, it has legal effect as clear evidence, so it plays an important role in litigation, and if it goes through supplementary procedures such as notarization, its legal effect can be further strengthened.