Legal analysis

The so-called "private lending" generally refers to the fund lending activities between economic entities such as natural persons, legal persons and other organizations other than financial institutions approved by the state according to law. All laws in China have provisions to protect the legal relationship of private lending, which has built a legal basis and institutional environment for the legal existence and development of private lending. While protecting private lending in accordance with the law, China should also curb the tendency of high interest rate of private lending and guard against the potential risks of usury. The law of our country does not stipulate the high-interest behavior in private lending as the crime of illegal business operation. Therefore, in some places, the conviction and punishment of folk usury according to the crime of illegal business operation has neither legislative basis nor judicial interpretation basis. In the free and open market economy environment, the interest rate of private lending is formed by market competition and is a true reflection of the relationship between supply and demand in the capital market. Interest itself cannot be regarded as a sin, and the state should pay attention to guiding and promoting the optimal allocation of funds. Practice has proved that under the temptation of high interest rates, it is really easy to induce all kinds of illegal crimes and must be punished according to law.

legal ground

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 his illegal income or confiscated of his property: (1) dealing in franchise, monopoly goods or other commodities with restricted business as stipulated 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; Other illegal business activities that seriously disrupt the market order.