1. Obtain credit funds from financial institutions and lend them to borrowers at high interest rates, and the borrowers know or should know in advance;

2. Borrowing money from other enterprises or raising funds from employees of the unit is lent to the borrower for profit, and the borrower knows or should know in advance;

3. The lender knows or should know in advance that the borrower is still providing loans for illegal and criminal activities;

4, contrary to social public order and good customs;

5. Other violations of mandatory provisions of laws and administrative regulations.

Private lending is a kind of private financial activity with a long history and widespread in the world, which mainly refers to natural persons, natural persons and legal persons or other organizations, legal persons or other organizations.

Financing with money or other securities as the target. Financial institutions engaged in loan business and their branches established with the approval of financial supervision departments, and related financial businesses such as issuing loans do not belong to the category of private lending.

Private lending can occur between natural persons, natural persons and legal persons or other organizations, legal persons and other organizations, and natural persons and legal persons.

Where a legal person or other organization raises funds from employees in the form of loans for the production and operation of the unit, as long as there are no circumstances as stipulated in Article 52 of the Contract Law of People's Republic of China (PRC) and Article 14 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases, the private lending contract is valid.

Extended data:

According to the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases:

Article 2 When a lender brings a lawsuit to a people's court, it shall provide such creditor's rights certificates as IOUs, receipts, IOUs and other evidence that can prove the existence of the legal relationship between lending and borrowing.

If the creditor's rights certificate such as IOUs, receipts and IOUs held by the parties does not specify the creditor, and the party holding the creditor's rights certificate brings a private lending lawsuit, the people's court shall accept it. The defendant raised a factual defense against the plaintiff's creditor qualification. If the people's court considers that the plaintiff is not qualified as a creditor after trial, it shall rule to dismiss the prosecution.

Article 3 Where the borrower and the lender have not agreed or clearly agreed on the place of performance of the contract, and no supplementary agreement has been reached afterwards, and the place of performance of the contract cannot be determined according to the relevant provisions of the contract or trading habits, the place of performance of the contract shall be the place where the party receiving the money is located.

Article 4 Where the guarantor provides joint liability guarantee for the borrower and the lender only sues the borrower, the people's court may not add the guarantor as a co-defendant; If the lender only sues the guarantor, the people's court may add the borrower as a co-defendant.

Where the guarantor provides a general guarantee for the borrower and the lender only sues the guarantor, the people's court shall add the borrower as a co-defendant; If the lender only sues the borrower, the people's court may not add a guarantor as a co-defendant.

Article 5 After placing a case on file, if the people's court finds that private lending itself is suspected of illegal fund-raising, it shall rule to dismiss the prosecution and transfer the clues and materials suspected of illegal fund-raising to the public security or procuratorial organs.

If the public security and procuratorial organs refuse to file a case, or the case is dismissed after investigation, or the procuratorial organs make a decision not to prosecute, or the effective judgment of the people's court finds that it does not constitute the crime of illegal fund-raising, the people's court shall accept the case.

Article 6 If a people's court finds clues and materials related to a private lending dispute case but different from the facts, it shall continue to try the private lending dispute case and transfer the clues and materials suspected of illegal fund-raising to the public security or procuratorial organs.

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