Conditions for the validity of a loan contract

According to the provisions of the "General Principles of Civil Law" and "Contract Law", in order for a private loan to be established and effective, the following conditions must be met: The parties entering into the contract If the subject is qualified, both parties have consistent intentions, the content of the contract is legal, and the lender will deliver the loan to the borrower.

Situations in which the loan contract is invalid

If the following circumstances exist, the loan will be deemed unqualified.

1. One party or both parties to the loan are unqualified

2. One party enters into a loan contract by means of fraud or coercion, and damages national interests

3. Lenders and lenders collude maliciously to harm the interests of the country, the collective or a third party

4. Use legal forms to cover up illegal purposes, such as lending money to others for gambling or drug trafficking; if the lender knows that the purpose of the loan is illegal If a loan is provided for activities, the loan contract will be invalid, and both parties will also be subject to civil sanctions

5. Damage to the interests of the public ***

6. Violation of mandatory laws and administrative regulations Provisions

7. In addition, loans between natural persons and non-financial institutions and enterprises are also invalid if one of the following circumstances occurs:

(1) The enterprise illegally raises funds from employees in the name of loans

(2) Enterprises illegally raise funds from the public in the name of lending

(3) Enterprises issue loans to the public in the name of lending

(4) Other violations of the law , administrative regulations and behaviors