Nowadays, many young people choose to use online loan platforms to solve financial difficulties. As people’s demand for online loans increases, there are more and more loan platforms on the market. It is inevitable that there are some illegal and non-compliant lending platforms. If you accidentally encounter such loan platforms, it is easy to fall into the quagmire of online loans due to reasons such as excessive loan interest rates. In order to protect the interests of borrowers, the state strictly cracks down on illegal Lending.

For normal private lending, borrowers must fulfill their repayment obligations in accordance with regulations. However, if they encounter illegal lending such as routine loans and loan sharks, borrowers also need to know how to protect their legitimate rights and interests. Borrowers can refuse to repay illegal and non-compliant interest rates, but they still need to repay the principal.

If you want to know whether the company you are borrowing from is legal, then we need to analyze the loan agreement signed by the company you borrowed from and you. If the following conditions exist, the borrower does not need to repay the loan. Interest:

1. Usury. Our country's law has clear requirements for the interest rate of private loans. If the loan interest rate exceeds 36%, it is considered usury. Usury is illegal. Therefore, for such a loan, the borrower can refuse to repay the loan interest. If the interest fee has been repaid, Then you can also advocate that the loan platform refunds the interest.

2. Professional lending. The so-called professional lending refers to private lending activities that do not obtain lending qualifications in accordance with the law, but are engaged in private lending as a profession, lending money to others. In this case, the law considers the private lending contract signed with the borrower to be invalid, so the borrower can refuse to travel Repayment obligations.

3. Routine loans. Routine loans generally illegally embezzle finances through "forging evidence", "falsely increasing debts", "maliciously creating defaults", etc. If the lender lends money to the borrower through the loan agreement, and then the money returns to the lender's hands, causing malicious creation Borrowing the illusion that the received funds have actually been delivered is a routine loan, and routine loans are illegal.

4. Beheading. Among private loans, beheading interest is also a relatively common illegal lending behavior. The so-called beheading interest means that the lender will directly deduct part of the guarantee fee and handling fee when lending, so that the actual loan amount is less than what is stated in the loan contract. The borrowed amount, in which case the borrower only needs to repay the actual borrowed principal and interest.

It is recommended that everyone learn to identify institutions when borrowing money. If you accidentally encounter illegal lending, then we need to use the law to protect our legitimate rights and interests.