Can a minor get a loan if he/she has property to back up the loan?

Asked on August 25, 2011 Wisconsin

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, generally not.  A loan agreement is a contract between a borrower (you) and a lender (a bank or some other financial institution) to lend and pay back with certain conditions (interest, etc.).  Minors do not have the "capacity" under the law to enter in to a binding contract.  There are some exceptions to that general rule but I highly doubt that any lending institution would consider taking the risk and entering in to a contract that could be rendered void and lose the money then give you.  Even if you have property to secure the loan they could not attach it if they have no legal basis - a valid contract.  Good luck.


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