The difference between online loans and loan sharks;

1. Different meanings

1. P2P online lending refers to online lending between individuals through the Internet. Direct lending enabled by the platform. It is a subcategory within the Internet Finance (ITFIN) industry. The number of online lending platforms has grown rapidly in China in 2012. So far, there are about 350 active ones, and the total number as of the end of April 2015 was 3,054.

2. Usury refers to loans that charge particularly high interest rates. It originated at the end of primitive society. In slave society and feudal society, it was the basic form of credit. In other words, before the emergence of capitalist society and the establishment of the modern banking system, private lending carried very high interest rates.

2. Essential differences

1. The essence of Internet finance is still finance, and it has not changed the hidden, contagious, widespread and sudden characteristics of financial risks. Strengthening Internet financial supervision is an inherent requirement to promote the healthy development of Internet finance.

2. Banks that issue loan sharks are generally run by gangs, and they often make huge profits from loan sharks. When a debtor fails to repay money on time, people in underground banks usually threaten the debtor and even threaten the debtor's family and friends so that they can repay the money.

Extended information:

According to the definition of Article 196 of the "Contract Law of the People's Republic of China"

A loan contract is an agreement between the borrower and A contract in which a lender borrows money and returns the borrowed money at maturity with interest.

Article 197 Contract Form and Main Terms

The loan contract shall be in written form, unless otherwise agreed on the loan between natural persons. The content of the loan contract includes terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.

Article 198 Contract Guarantee

When entering into a loan contract, the lender may require the borrower to provide a guarantee. The guarantee shall be in accordance with the provisions of the Guarantee Law of the People's Republic of China.

Article 199: The borrower’s obligation to provide its true situation

When entering into a loan contract, the borrower shall provide business activities and financial information related to the loan as required by the lender. the reality of the situation.

Article 200: Preliminary deduction of interest

Interest on borrowings shall not be deducted from the principal in advance. If interest is deducted from the principal in advance, the loan shall be returned and interest calculated based on the actual borrowed amount.

Article 201 Liability for Loan Default

If the lender fails to provide the loan in accordance with the agreed date and amount, causing losses to the borrower, it shall compensate for the losses. If the borrower fails to collect the loan on the agreed date and amount, the borrower shall pay interest on the agreed date and amount.

Baidu Encyclopedia—Online Loan

Baidu Encyclopedia—Loan Sharing