Legal analysis: Formal requirements are the external forms of reaching an agreement, such as IOUs, loan contracts, oral agreements and other forms that can show the consent of both parties.

A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest. Loans to natural persons can be in written form or through oral agreements. Private lending refers to a civil legal act between natural persons and between natural persons and legal persons (including other organizations), in which one party transfers a certain amount of funds to the other party, and the other party repays the loan at maturity and pays interest as agreed.

Legal basis: Article 667 of the Civil Law of People's Republic of China (PRC) is a loan contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.