The process of private lending is:

1. If there is a dispute between the borrower and the lender about whether there is an agreed interest rate and it cannot be proved, the interest can be calculated by referring to the bank's similar loan interest rate.

2. If the parties dispute the interest rate standard, they can determine the interest rate standard within the standard of not exceeding 4 times the interest rate of similar loans of banks.

3. For interest-bearing loans, the interest rate may be appropriately higher than the bank's interest rate, but it shall not exceed 4 times the bank's interest rate for similar loans, that is, it shall not be engaged.

4. The lender shall not include the interest in the principal to calculate compound interest, otherwise it will not be protected by law. This provision is punitive in judicial practice, and if it is violated, it may be judged to pay interest at the same loan interest rate.

5. If the parties borrow foreign currency, Taiwan dollar, etc. , and the lender requires repayment in the same currency, which may be allowed. If the borrower does not have the same currency, he can repay it in RMB with reference to the foreign exchange rate at the time of repayment. If the lender requests to pay interest, it may calculate the interest with reference to the foreign currency savings rate of China Bank.

Is it troublesome for private lending procedures? What is the process of handling private lending?

Now the demand for loans is increasing, and private lending is also welcomed by everyone, but many borrowers don't know much about the handling process of private lending. So, is the private lending procedure troublesome? What is the process of handling private lending?

Is it troublesome for private lending procedures?

In fact, the application procedures for private lending are generally very simple, and there is no uniform standard. Generally, borrowers and borrowers will sign IOUs or loan contracts by themselves, and no other loan information is needed. Borrowers are not as harsh as banks when preparing loan information.

Generally speaking, private lending only happens between acquaintances, so it is enough to provide the borrower's own identity certificate at most. If the borrower provides collateral as a mortgage loan, it also needs the borrower to provide proof of the property right of the collateral.

However, it should be noted that the simple procedures of private lending lead to greater risks and higher loan interest, so the borrower had better consider it according to his own actual situation.

What is the process of handling private lending?

The process of private lending is generally as follows:

(1) Investigate the borrower's personal situation, confirm whether the borrower has repayment ability and the credit reputation of the repayment person, and ensure the timely recovery of loan funds.

(2) The agreed loan interest rate, loan time and other details. Negotiating loan interest rate Note that "the interest rate of private lending can be appropriately higher than the bank's loan interest rate for the same period, but it can't exceed 4 times the bank's interest rate. If it is exceeded, the excess interest is not protected by law. "

(3) Sign a formal loan contract or agreement. The loan contract shall indicate the borrower, loan amount, purpose, interest rate and repayment time, and shall be signed and sealed, with each party holding one copy to prevent occurrence.

(4) If necessary, the borrower shall provide loan collateral and guarantor. Once the borrower is unable to repay the debt, he can claim the loan from the guarantor, or he can legally use the collateral to offset the loan.

Is it troublesome for private lending procedures? What is the process of handling private lending? The above content gives a brief introduction to private lending. Among them, in order to ensure the legitimate rights and interests of borrowers and creditors, a formal loan contract should also be concluded for private lending.

What is the process of private lending?

In fact, private lending refers to an act of self-financing by financial institutions and their branches engaged in loan business between natural persons, legal persons and some organizations, or between them, rather than after being approved by the financial supervision department. The process of private lending is generally as follows: first, both borrowers and borrowers need to meet certain conditions and must be able to provide the documents needed for private lending. The most basic thing is personal identification. If the borrower has agreed on a guarantor, it shall also provide the identity certificate of the guarantor. Second, both parties need to negotiate the loan principal and its interest rate by themselves. If the annual interest rate agreed by the borrower and the borrower does not exceed 24%, the lender may require the borrower to pay the corresponding interest at the agreed interest rate, and the people should also support it. However, if the annual interest rate agreed by both borrowers and borrowers has exceeded 36%, the agreed interest rate for the excess part is invalid. Third, the guarantee procedure. When both borrowers and borrowers borrow money, if the borrower needs to borrow a large amount, or there are certain risks, then the borrower needs to perform the guarantee and mortgage procedures by himself, and need to provide other economically powerful third parties as guarantees, or sign a reasonable loan agreement with his own movable or immovable property as collateral. Fourth, when concluding an agreement, don't be ashamed to sign it because the other party is your good friend or relative. Many private loans are generated because there is no written evidence, and some lenders may lose the case. Therefore, when borrowing money, both parties must sign a written agreement, in which the type, term, purpose and repayment method of the loan are clearly written, and both parties need to sign, and each party holds one copy. In private lending activities, it must be legal, because only legal lending can finally be protected by law.

This concludes the introduction of the process and mode of private lending. I wonder if you have found the information you need?