As the saying goes, it is not difficult to borrow. Nowadays, many people don't pay back their loans. Under normal circumstances, they have to repay, but they can not repay if they are in the following situations, because there is no legal protection.

First, loans are used for improper transactions.

Some people often borrow money, mainly for gambling or usury, which are illegal. If they know and borrow money, this situation is invalid. Even if the borrower plays a trick on you and doesn't pay it back, there's nothing you can do but knock out his teeth and swallow his blood. Therefore, before borrowing money, you must understand the purpose of the other party's borrowing, and you must never lend it out when it is used for illegal and criminal activities.

Second, invalid agency

In many cases, the borrower can't sign on the spot, and an agent will sign the agreement at this time. If the agent signs the agreement without authorization or abuse of power, the loan has no legal benefit and the borrower does not need to repay.

Borrower: The borrower must have relevant licenses and business licenses, and be approved and registered by the local administrative department for industry and commerce. If it is a bank loan, you cannot issue a credit loan to the relevant contacts of the bank.

Loan contract: the loan contract must specify the type, purpose, interest rate, repayment period and method, etc. If the loan contract is not clear, some of it may lose its legal effect. If the loan is used for something illegal, the whole contract will lose its legal effect.

No loan: in this case, a contract is generally signed, but it is not distributed to the borrower by transfer. In this case, the loan is invalid, there is no need to repay, and there is no need to worry about your loan contract. If there is no distribution, there will be no dispute.