Yes, because the loan belongs to the business agreed by both parties. Only by signing a contract can the rights and obligations of both parties be guaranteed.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 464 A contract is an agreement between civil subjects to establish, change or terminate a civil legal relationship. Agreements on status relations such as marriage, adoption and guardianship shall be governed by legal provisions on such status relations; If there are no provisions, the provisions of this part can be applied according to their nature.

Article 465 A lawfully formed contract shall be protected by law. A legally established contract is legally binding only on the parties, except as otherwise provided by law.