Legal analysis: it is legal, and the loan company is legal, but whether its loan business is legal is another matter. Conditions for establishing a loan company: (1) Having articles of association that meet the requirements; (2) The registered capital is not less than RMB 500,000.00 Yuan, which is paid-in monetary capital, and shall be fully paid by the investor at one time; (3) Having senior managers with professional knowledge and professional work experience; (4) Having staff with corresponding professional knowledge and work experience; (5) Having the necessary organizational structure and management system; (6) Having business premises, safety precautions and other business-related facilities that meet the requirements; (7) Other conditions stipulated by China Banking Regulatory Commission.

Legal basis: Article 6 of the Company Law of People's Republic of China (PRC). When a company registers to establish a company, it shall apply to the company registration authority for registration of establishment according to law. Those that meet the conditions for establishment as stipulated in this Law shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority; Those who do not meet the conditions for establishment as stipulated in this Law shall not be registered as a limited liability company or a joint stock limited company. Where laws and administrative regulations stipulate that the establishment of a company must be approved, the approval procedures shall be handled according to law before the company is registered. The public may apply to the company registration authority to inquire about the registered items of the company, and the company registration authority shall provide inquiry services.