Legal analysis: Private lending is generally not illegal unless the loan interest rate exceeds the legal requirements. The law stipulates that if a loan contract between natural persons stipulates the payment of interest, the interest rate of the loan shall not violate the state's regulations on restricting loan interest rates. The interest rate of private loans may be appropriately higher than the bank's interest rate, but the maximum shall not exceed four times the bank's similar loan interest rate. The interest is also protected by law, while the excess is not protected by law.

Legal basis: Article 680 of the "People's Liberation Army and Civil Code of the People's Republic of China" prohibits usury lending, and the interest rate for borrowing must not violate relevant national regulations. If the loan contract does not stipulate the payment of interest, it will be deemed that there is no interest. If the loan contract does not clearly stipulate the payment of interest, and the parties cannot reach a supplementary agreement, the interest will be determined according to local or party transaction methods, transaction habits, market interest rates and other factors; if the loan is borrowed between natural persons, it will be deemed to have no interest.