Private lending mainly refers to the financing behavior between natural persons, between natural persons and legal persons or other organizations, and between legal persons or other organizations 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 has certain risks, but the interest agreement within 4 times of the loan interest rate announced by the People's Bank of China will be protected by law. Therefore, the key depends on the strength and credibility of the borrower, as well as whether to set mortgage, pledge, guarantee and other guarantees.

Lenders and borrowers form a lending relationship through the online lending platform, and the provider of the online lending platform only provides media services. The online loan platform provider explicitly provides guarantee for the loan through the webpage, advertisement or other media, or there is other evidence to prove that the lender requests the online loan platform provider to assume the guarantee responsibility.

legal ground

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 shall be deemed invalid by the people's court in any of the following circumstances:

(a) to obtain credit funds from financial institutions and lend them to borrowers at high interest rates, and the borrowers knew or should have known in advance;

(2) The borrower knows or should know in advance that the funds obtained by borrowing from other enterprises or raising funds from employees of the unit are lent to the borrower for profit;

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

(4) Violating public order and good customs;

(five) other violations of the mandatory provisions of laws and administrative regulations. Article 21 Lenders and borrowers form a loan relationship through the online loan platform. The online lending platform provider only provides media services, and the people's court will not support it if the parties request it to assume the guarantee responsibility. The people's court shall support the online loan platform provider who expressly provides a guarantee for the loan through websites, advertisements and other media or has other evidence to prove that the lender requests the online loan platform provider to assume the guarantee responsibility.