Private lending is not illegal if the agreement is reached on the basis of consensus, voluntariness and equality between both parties, and there is no usury or usury re-lending that violates the law. The law stipulates that the interest on private loans shall not exceed four times the one-year loan market quotation rate issued by banks across the country authorized by the People's Bank of China, which exceeds the practice of lending at high interest rates. In addition, if you use credit funds from a financial institution to lend them to others at high interest rates, you may violate the criminal law and constitute a crime. Legal basis: Article 679 of the "People's Republic of China and Civil Code" A loan contract between natural persons is established when the lender provides the loan. Article 175 of the "Criminal Law of the People's Republic of China" , and shall be fined not less than one time but not more than five times the illegal income; if the amount is huge, the person shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and shall also be fined not less than one time but not more than five times the illegal income. If a unit commits the crime in the preceding paragraph, the unit shall be fined, and the person directly in charge and other directly responsible persons shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention. Article 175-1 Whoever obtains loans, bill acceptances, letters of credit, letters of guarantee, etc. from banks or other financial institutions by deceptive means, causing heavy losses to banks or other financial institutions, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also A fine or a fine alone shall be imposed; if a particularly heavy loss is caused to a bank or other financial institution or there are other particularly serious circumstances, the person shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined. If a unit commits the crime in the preceding paragraph, the unit shall be fined, and the person directly in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.