Legal analysis: Private lending refers to lending between natural persons, between natural persons and legal persons, and between natural persons and other organizations. The loan contract shall take effect from the date when the lender provides the loan. If private lending does not stipulate interest, it shall be regarded as not paying interest.

Legal basis: Article 67 1 of the Civil Code of People's Republic of China (PRC). If the lender fails to provide the loan according to the agreed date and amount, thus causing losses to the borrower, it shall compensate for the losses. If the borrower fails to collect the loan according to the agreed date and amount, it shall pay interest according to the agreed date and amount.

Article 679 A loan contract between natural persons is established when the lender provides the loan.