It is illegal for an individual to make a living by lending money. Lending your money to others is protected by law. It is illegal to raise funds and lend money in various ways, that is, to borrow money from others, which may involve illegal fund-raising and illegal lending. In private lending, the lender's funds must be its own funds with legitimate income, and it is forbidden to absorb or absorb other people's funds in disguise for lending. China Bank, China Insurance Regulatory Commission and other four departments jointly issued a notice, clarifying that no unit or individual may set up an institution engaged in or mainly engaged in lending business or take lending as its daily business activities without the approval of the competent authorities according to law.

Whether long-term lending is illegal depends on the situation:

1, lending is generally not illegal, as long as the subject of mortgage is qualified to lend, and the amount and interest of the loan are reasonable;

2. It is illegal to lend usury. If the loan interest exceeds four times the quoted interest rate of the one-year loan market when the contract is established, it can be identified as usury.

1. The following situations are illegal loans:

1, the staff of financial institutions use high interest rates to absorb deposits and then lend privately;

2. The staff of financial institutions issue loans to related parties in violation of regulations;

3. The staff of financial institutions illegally borrowed huge amounts of money as collateral in the name of banks by taking advantage of their positions.

To sum up, private lending is protected by law within the scope permitted by law. Attention should be paid to the limitation of action, and the limitation of legal protection is two years. If the other party intentionally fails to perform its obligations, it shall defend its rights as soon as possible.

Legal basis:

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

first

The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and unincorporated organizations. These provisions shall not apply to financial institutions and their branches engaged in loan business established with the approval of the financial supervision department, as well as disputes arising from loans and other related financial businesses.

second

When the lender brings a private lending lawsuit to the people's court, it shall provide debt vouchers such as IOUs, receipts and IOUs that can prove the existence of the legal relationship between lending and borrowing.