Whether online lending is illegal depends on the situation. If it is normal, it is not illegal to have a business license. If there is no legal procedure to lend money, it is suspected of illegal business. Online lending depends on the specific platform. It is illegal for some small platforms if micro-loans are illegal and the loan amount does not match the actual account.

Legal analysis

Is online lending legal or not? Look at it clearly and treat it differently. As a form of Internet finance, online lending does not violate relevant laws and regulations. However, if you deliberately attract others to lend with high interest rates and use the funds for arbitrage or cheat others to lend, it constitutes a crime and should be investigated for corresponding criminal responsibility. Not illegal, but it belongs to it. The legal judgment is that it is not a penalty interest, but only the principal. The interest rate of private personal loans shall be determined by both borrowers and borrowers through consultation, but the interest rate determined through consultation between the two parties shall not exceed four times of the loan interest rate of financial institutions at the same period and the same grade announced by the People's Bank of China (excluding floating). Those who exceed the above standards should be defined as high-interest loans. If it is online, it is also illegal, and the parties need to bear certain legal costs for their actions and be punished by law. It is legal not to exceed the interest rate stipulated by law. The Supreme Law issued a new regulation, taking the one-year loan market quotation (LPR) issued by the National Interbank Funding Center authorized by the People's Bank of China on the 20th of each month as the standard, and clearly determining the upper limit of judicial protection of private lending interest rates. Where there are other provisions in the law, those provisions shall prevail.

legal ground

Article 13 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases shall be deemed as invalid under any of the following circumstances: (1) Borrowing from financial institutions; (2) Lending money from other profit-making legal persons, raising funds from employees of the unit or illegally absorbing funds from public deposits; (3) Lenders who have not obtained the loan qualification according to law provide loans to unspecified social objects for the purpose of making profits; (four) the lender knows or should have known in advance that the borrower's loan is used for illegal and criminal activities, but still provides loans; (5) Violating the mandatory provisions of laws and administrative regulations; (6) Violating public order and good customs.

Consequences of non-repayment of online loans

Legal analysis: The specific consequences of non-repayment of online loans are as follows: 1. Penalty interest The second is to include it in the list of untrustworthy people, restrict high consumption, tourism and other activities, and affect personal credit. Third, the loan application was rejected again. 4. Be punished by law. When a lending institution files a lawsuit, it will judge the debtor to repay the loan regularly. The loan should be repaid in time no matter where it is. Although online loans are more convenient than ordinary bank loans at present, they also require more extensive restrictions on the materials provided. However, online lending does not have consequences, and borrowers need to bear corresponding legal responsibilities.

Legal basis: Article 676 of the Civil Code of People's Republic of China (PRC). If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations.

Is peer-to-peer lending protected by law? Does anyone know the law? Just to point out, is it about online lending?

As long as it does not violate the provisions of online lending, it is protected by law. If the interest rate of online loans is higher than the law, the excess will not be protected.

Interim Measures for the Administration of Business Activities of Personal-to-Personal Loan Information Intermediaries

Article 10 A peer-to-peer lending information intermediary institution shall not engage in or be entrusted to engage in the following activities:

(1) Financing for oneself or in disguised form;

(2) directly or indirectly accepting and collecting the lender's funds;

(three) directly or in disguised form to provide a guarantee to the lender or promise to protect the principal and interest;

(4) Propagandizing or promoting financing projects in physical places other than the Internet, fixed telephones, mobile phones and other electronic channels by itself or by entrusting or authorizing a third party;

(5) Granting loans, except as otherwise provided by laws and regulations;

(6) Time limit for splitting financing projects;

(seven) to raise funds through the sale of financial products such as wealth management, and to sell financial products such as bank wealth management, brokerage asset management, funds, insurance or trust products on a commission basis;

(eight) to carry out asset securitization business or realize the transfer of creditor's rights in the form of packaged assets, securitization assets, trust assets and fund shares. ;

(9) Mixing, bundling or acting as an agent in any form with investment, sales agency, brokerage and other businesses of other institutions, except as permitted by laws and regulations and relevant regulatory provisions on peer-to-peer lending;

(10) Fabricating and exaggerating the authenticity and income prospects of financing projects, concealing the defects and risks of financing projects, making false one-sided propaganda or promotion by vague language or other deceptive means, fabricating and spreading false or incomplete information, damaging the commercial reputation of others and misleading lenders or borrowers;

(eleven) to provide information intermediary services for high-risk financing such as investment in stocks, OTC fund-raising, futures contracts, structured products and other derivatives;

(12) Engaged in equity crowdfunding and other businesses;

(thirteen) other activities prohibited by laws and regulations and regulatory provisions related to peer-to-peer lending.

Thirteenth borrowers shall not engage in the following acts:

(a) defrauding loans by deliberately changing identity, fictional financing projects, and exaggerating the income prospects of financing projects;

(two) at the same time through a number of peer-to-peer lending information intermediaries, or by changing the name of the project, the project content is not substantial changes. For the same financing project;

(3) Publishing the information of the same financing project in a public place other than the information intermediary institution in peer-to-peer lending;

(4) It is found that the services provided by peer-to-peer lending information intermediaries contain the contents listed in Article 10 of these Measures and are still being traded;

(5) Other activities prohibited by laws and regulations and relevant regulatory provisions on peer-to-peer lending.

Legal Issues Needing Attention in peer-to-peer lending

1. Electronic contracts are legally binding.

Many investors have doubts about the legal effect of electronic contracts in the investment process, but according to Article 10 of China's Contract Law, the parties may conclude contracts in written form, oral form and other forms. Article 11 stipulates that written forms refer to contracts, letters and data messages (including telegrams, telexes, faxes, electronic data interchange and e-mails) and other forms that can tangibly express the content.

2. Pay attention to the borrower in the loan contract.

P2P platform plays an intermediary role in the whole process of lending and investment. Therefore, in the loan contract, the borrower column must be the actual borrower in the investor's loan project, not the platform. Investors need to pay attention to this.

3. Distinguish between loan agreements and entrustment agreements.

There are two common electronic protocols in P2P platform, one is loan agreement and the other is entrustment agreement. The loan agreement is a loan contract signed by the investor and the borrower, in which the P2P platform appears as the third party, and there will also be a guarantee company as the fourth party. Entrustment agreement is an entrusted investment agreement signed between investors and P2P platform, and investors entrust funds to the platform for investment.