Small loan companies are legal, as long as they meet the conditions for setting up a company stipulated by law. According to relevant laws and regulations, loans between natural persons are regarded as interest-free. Loans need to be signed, and rights protection will be more convenient.

legal ground

Article 680 of the Civil Code

It is forbidden to lend at high interest rate, and the lending rate shall not violate the relevant provisions of the state.

If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest.

If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.