Small amount and few times of private lending between normal natural persons is legal and protected by law. The act of illegally and disguised absorbing unspecified public deposits in the form of loans constitutes the crime of illegally absorbing public deposits, which is illegal and needs to be investigated for criminal responsibility.

Legal basis:

The Supreme People's Court's Opinions on People's Trial of Lending Cases

Article 10 A loan relationship formed by one party against its true meaning by means of fraud, coercion or taking advantage of others' danger shall be deemed invalid.

Article 11 The lender knows that the borrower borrows money to engage in illegal activities, and its lending relationship is not protected.

Is personal lending illegal?

Personal lending is not illegal, but a civil act, that is, private lending. Personal lending is protected and restricted by civil law and contract law, as long as the agreed interest on lending does not exceed the legal lending interest range. If there is, the excess is not protected by law. Article 679 of the Civil Law of People's Republic of China (PRC) stipulates that a loan contract between natural persons shall be established when the lender provides the loan. Article 680 usury is prohibited and the loan interest rate shall not violate the relevant provisions of the state. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.

Is it illegal to transfer personal loans to loans?

Whether personal loans and lending are illegal depends on whether the interest rate of lending is in line with the law. If charging high interest on loans constitutes a crime, according to the provisions of the Criminal Law, the parties concerned may be sentenced to fixed-term imprisonment of not more than three years or criminal detention. At the same time, if the loan is not used according to the purpose of the loan, it is a breach of contract, and the bank can recover the loan and hold the individual liable for breach of contract. Criminal Law Crime of Illegally Issuing Loans Article 186 Any employee of a bank or other financial institution who issues loans in violation of state regulations and the amount is huge or causes heavy losses shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 10,000 yuan but not more than 100,000 yuan; If the amount is especially huge or especially heavy losses are caused, he shall be sentenced to fixed-term imprisonment of not less than five years and fined not less than 20,000 yuan but not more than 200,000 yuan.

Is it illegal to lend more than ten people to individuals?

Legal analysis: It is illegal for individuals to lend more than ten people. Whether lending is illegal depends on the specific situation. In violation of state regulations, without the approval of the regulatory authorities, or beyond the scope of business, for the purpose of making profits, regularly providing loans to unspecified social objects, disrupting the order of the financial market, and if the circumstances are serious, they shall be convicted and punished for the crime of illegal business operation. Therefore, in this case, entrusted loans are illegal. Lending loans to unspecified social objects on a regular basis refers to lending funds to unspecified people (including units and individuals) for more than 10 times in two years.

Legal basis: Article 225 of the Criminal Law of People's Republic of China (PRC), in violation of state regulations, commits one of the following illegal business operations, disrupting market order, and if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times the illegal income or confiscated property:

(a) operating a franchise or monopoly commodity or other commodities whose operation is restricted by laws and administrative regulations without permission;

(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;

(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;

(four) other illegal business activities that seriously disrupt the market order.