At present, the rapid development of private lending and its new trend have profound reasons:

(1) diversified borrowers. According to the survey, the subjects of private lending are very complicated, including not only farmers, urban residents, individual industrial and commercial households, but also many enterprises and institutions. Some private enterprises have to choose private lending as a financing method because of their large demand for funds and difficulty in obtaining bank loan support, and have increasingly become the protagonists of the private lending market.

(2) Lending procedures tend to be written. In the past, private lending was generally based on verbal agreement, but now most of them have to sign a written agreement, the terms of which include guarantee, guarantee, loan amount, repayment period, liquidated damages and so on. Some agreed loan amount clauses combine principal and interest into one, which makes it difficult to distinguish interest rates.

(3) Standardization of loan procedures. People's awareness of self-protection has been continuously enhanced, lending behavior has become more cautious, and lending procedures have become more standardized. Most lending activities have formal written documents, and some need intermediaries as guarantees. In some places, brokers even provide guarantees for borrowers and lenders.

(4) Professionalization. Some individual industrial and commercial households have entered the rentier class. From production and operation to capital lending, a "private bank" has gradually formed, and the risks are more concentrated.

(5) Interest rates remain high. The annual interest rate is generally between15% and 30%, which is 2 to 4 times higher than the bank interest rate in the same period, which greatly disrupts the financial order.

(6) Private lending procedures are simple and quick. According to the survey, borrowers and borrowers are usually neighbors, even villagers. Lenders are relatively familiar with borrowers. If the borrower needs funds, he can explain the purpose of funds, loan amount, repayment date and interest to the lender through intermediary guarantee, and then sign a loan agreement (contract) to obtain the required funds. Compared with bank loans, this form of lending is more flexible and meets the urgent needs of farmers for seasonal production and operation funds.

(7) Financial management consciousness has changed. At present, the deposit interest rate is low, other investment channels are narrow, and idle funds turn to private lending to obtain high returns. Moreover, with the improvement of people's social credit awareness, private lending behavior has become more rational and standardized, from lending to return, all in a compliant way.

(8) The capital demand of self-employed households has increased. According to the survey, the operating cost of some specialized farming and transportation households in Mengcun County is about 20,000-30,000 yuan, and the working capital is about 50,000-80,000 yuan. The rural financial sector has a small loan quota for these specialized households. Generally, it is less than 3,000 yuan, and the term is short, which can't meet the needs of farmers' production and operation. Therefore, most professional households have to borrow privately.

(9) Bank loans are complex and demanding.

(10) The centralized contraction of financial institutions and the comprehensive collection of credit rights have shrunk the financial financing function and made private lending increasingly active.

(1 1) Some borrowers lack risk awareness, and many of them borrow money from friends without considering the existing risks.

(12) The social credit system is missing, and the moral norms have not yet been formed. The current law does not protect the contractual relationship and creditors sufficiently, and the moral cost, economic cost and legal cost of dishonesty are too low, and those who fail to get due legal sanctions and economic sanctions, resulting in malicious debts from time to time. In some cases, the borrower does not intend to repay the loan as scheduled at the beginning of the loan; Some borrowers simply walk away because they can't repay huge debts after the failure of production and operation; In some cases, borrowers change loans at high interest rates to earn interest differences, just to defraud loans.

(13) Legal norms and corresponding supervision mechanisms need to be improved. At present, there are no special laws and regulations on private lending in China, and the judgment is mainly based on the provisions of the General Principles of Civil Law, the Contract Law on private lending, and the relevant normative documents of the Supreme Court. However, there are still many areas that need to be further clarified, which leads to the reduction of the security of private lending and the increase of risks. When government supervision and social forces cannot be solved, it will flood into the courts in large numbers.

(14) Other reasons. After getting a large amount of compensation for land acquisition and demolition, individuals make good use of it, but choose gambling to pass the time. On the surface, the normal lending relationship is essentially gambling debts or gambling. Some cases are private lending cases arising from marriage disputes. The defendant and the defendant used to be husband and wife, lovers and even extramarital affairs. In such cases, the defendants mostly deny the plaintiff's claim. In some cases, in false litigation, one party is the property of husband and wife, making up the fact of debts, trying to confirm the existence of their fictitious debts through judicial procedures, thus infringing on the legitimate rights and interests of the other party.