Private lending mainly refers to the financing behavior between natural persons, legal persons and unincorporated organizations. However, private lending is a risky activity. If the lender illegally absorbs other people's funds for the purpose of illegally occupying other people's funds, or partially lends them to the borrower after absorbing other people's funds, and partially uses them for their own squandering, it may commit the crime of fund-raising fraud.

In private lending, the following acts constitute fraud:

(a) using false certificates and property certificates to borrow money and failing to repay the loan for a long time.

(2) Borrowing for fictitious reasons and maliciously evading debts.

(3) Concealing the facts

(4) Credit card fraud

(5) The amount borrowed by the borrower is far higher than its repayment ability.

Legal basis: According to Article 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases.

The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and unincorporated organizations.

According to Article 13 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases,

If the borrower or lender's lending behavior is suspected of committing a crime, or the effective judgment determines that it constitutes a crime, and the parties file a civil lawsuit, the private lending contract may not be invalid. The people's court shall, according to the provisions of Article 52 of the Contract Law of People's Republic of China (PRC) and Article 14 of this Law, determine the validity of the private loan contract.

Note: Since the Civil Code came into effect on June 65438+1 October12020, the above analysis will refer to the provisions of the Civil Code, and the conclusions may be different.