1. The borrowing procedures should be complete.
No matter how good the relationship between the debtor and the creditor is, you must always make an IOU when borrowing money. Failure to make an IOU is the biggest legal risk.
2. Pay attention to the identity of the debtor.
3. Language problems.
don't use polysyllabic words when typing IOUs. Our country's culture is extensive and profound, and many Chinese characters have the phenomenon of multi-pronunciation and multi-interpretation. Once these Chinese characters are used in IOUs, it may cause disputes. For example, "paying back RMB 1," can be understood as "paying back RMB 1," or "still owing RMB 1,".
4. Interest.
the interest rate should conform to the regulations. The interest rate of private lending can be appropriately higher than the bank interest rate, but it shall not exceed four times the interest rate of similar loans of banks (including the interest rate). Otherwise, the excess interest is not protected.
Lending can be divided into interest-bearing lending and interest-free lending, in which the interest rate of production and business lending between citizens can be appropriately higher than that of living lending. "Contract Law" stipulates: "When the loan contract between natural persons stipulates to pay interest, the interest rate of the loan shall not violate the relevant provisions of the state on restricting the interest rate of the loan." At present, the state stipulates that the interest rate of private loans is at most four times that of similar loans of banks. The interest rate of usury is not protected by the state.
interest may be agreed, but the interest shall not be higher than four times the bank interest rate in the same period, and the court will not support it if it is higher. If there is no agreement on interest, according to the provisions of the Contract Law, if there is no agreement or unclear agreement on the payment of interest in the loan contract between natural persons, it will be regarded as not paying interest. Personal loans between citizens are deemed to have no interest if there is no agreed interest. If there is no agreement on the debt, there is no interest, but if it is not returned after the repayment date, you can ask for the interest to be calculated according to the bank interest.
5. Time.
In private lending, there are two controversial times: repayment time and IOU writing time.
the repayment time is the time when the creditor and the debtor should repay the principal and interest. In reality, people often ignore this agreement or fail to make a clear agreement. The most common expression is repayment after a certain period of time, such as repayment after one year. "One year later" is literally a time period, not a time point. Repayment after two years, three years or more can be understood as "repayment after one year". Although there are certain interpretation rules in law, this writing method increases the uncertainty of realizing creditor's rights after all. The uncertainty of repayment time is also likely to lead to disputes about the limitation of action in practice. Therefore, when agreeing on the repayment time, it is best to make it clear to the year, month and day.
the formation time of IOUs is usually the time when debtors write IOUs. The agreement of this time should also be specific to the year, month and day. In practice, debtors often write this date intentionally or unintentionally, or only write a part of the year, month and day. If the debtor only states June 25th. Although this time is clear to creditors and debtors when writing IOUs, it will inevitably lead to disputes over the formation time of IOUs. If there is no agreed repayment period, the borrower may return it at any time, and the lender may request it at any time.