Is it easy to apply for private loans?
Private loans also need to pay attention to the borrower's credibility and repayment ability. First of all, it depends on the other party's fixed assets and economic income to judge whether it has repayment ability. Secondly, it also depends on how the other party is at ordinary times, how good the reputation is, and whether the borrower has a "bad record" of "borrowing and not paying back".
Among them, private lending is generally concerned about the following points:
(1) When you have a loan contract or an IOU, don't take human feelings, relationships and other factors into account. Be sure to ask the borrower to write the contract or IOU clearly in person, indicating the borrower, loan amount, purpose, interest rate and repayment time, and sign it, with each party holding one copy and keeping it properly.
(2) If the amount is large, the guarantee and mortgage procedures shall be performed. To be on the safe side, it is best for borrowers to find a guarantor or guarantee unit with certain economic strength for large loans. If necessary, the borrower can also use personal property such as certificates of deposit, bonds, motor vehicles and real estate as collateral to improve the guarantee or mortgage procedures. In this way, if the borrower can't repay the debt, he can claim the loan from the guarantor, or he can legally offset the loan with collateral.
(3) The borrower shall use the loan legally. National laws do not protect borrowers from knowingly borrowing money for gambling, drug trafficking or drug abuse. As the saying goes, a gentleman gathers money and takes it properly. When borrowing money, don't just look at personal interests, lend money to people who violate the law and discipline.
(4) The loan interest rate should be reasonable and legal. Article 6 of the Supreme People's Court's Opinions on Trial of Loan Cases stipulates that the interest rate of private lending may be appropriately higher than the bank interest rate, but the maximum interest rate shall not exceed four times that of bank loans in the same period. At the same time, interest shall not be included in the principal to calculate compound interest, which is often called "rolling interest". Excess interest and compound interest are not protected by law. Therefore, the interest rate negotiated between borrowers and lenders should be within the legal scope.
(5) Pay attention to the repayment period. China's "General Principles of Civil Law" stipulates: "The limitation period for requesting protection of civil rights from the people's court is 2 years." In other words, after the loan reaches the agreed repayment period, it will be protected by law within two years, and it will no longer be protected by law after more than two years. According to this provision, creditors can take the form of collection or renewal of IOUs to safeguard their legitimate claims.
(6) recover the arrears by law. If the borrower doesn't pay attention to credibility and evade debts, the creditor must refrain from taking hostages, forcibly grabbing goods and other excessive illegal acts, and correctly use legal weapons to safeguard their legitimate rights and interests. According to the law, for the creditor-debtor relationship with clear facts and small amount, the creditor may apply to the court for a payment order and directly demand the debtor to repay the debt. When necessary, the court may take compulsory measures.
(7) Beware of "illegal fund-raising" type of private lending. Some individual enterprises or business households take advantage of people's greed for high profits, throw high-profit bait, and illegally raise funds underground between people in the same area or familiar with them. Such fund-raising operators are either profligate and unable to repay, or abscond with money, leaving creditors with nothing to lose. This kind of deteriorated private lending is the most risky and should be highly valued by everyone.
What are the conditions for private microfinance?
The basic conditions of private microfinance are generally as follows:
(1) The applicant is a resident of Chinese mainland and holds a valid identity document.
(2) The borrower can provide a stable address.
(3) The applicant has no bad credit record, has a stable job and economic income, and can provide proof of bank flow.
(4) The borrower's loan is used legally.
Is it easy to apply for private loans? What are the conditions for private microfinance? The above contents introduce these two problems accordingly. Among them, for the partners who handle private lending, because private lending has certain risks, they must be cautious in the process of handling, and don't rush to handle it because they need money urgently, so as not to be deceived.