Private lending refers to lending between citizens, between citizens and legal persons, and between citizens and other organizations. As long as the intention of both parties is true, it can be considered as valid, and the mortgage generated by the loan is also valid accordingly, but the interest rate shall not exceed the relevant interest rate stipulated by the People's Bank of China.

The establishment of a small loan company needs to meet the following conditions:

1, with articles of association that meet the requirements.

2. The promoters or investors shall meet the prescribed conditions.

3. Small loan companies are organized as limited liability companies or joint stock limited companies. A limited liability company is established by capital contribution of less than 50 shareholders; A joint stock limited company shall have two to two hundred promoters, more than half of whom shall have their domicile in China.

4. The source of the registered capital of the small loan company is true and legal, and all of them are paid-in monetary capital, which shall be paid in full by the investor or promoter in one lump sum. The registered capital of a limited liability company is not less than 5 million yuan, and the registered capital of a joint stock limited company is not less than 6,543,800 yuan. The shares held by a single natural person, enterprise legal person, other social organizations and their related parties shall not exceed 65,438+00% of the total registered capital of the microfinance company.

5. There are directors and senior managers who meet the requirements of post qualifications.

6. Staff with corresponding professional knowledge and experience.

7. Necessary organizational structure and management system.

8. Having business premises, safety precautions and other business-related facilities that meet the requirements.

9 other prudential conditions stipulated by the provincial government finance office.