In 2019, the Supreme People's Court issued the "Regulations of the Supreme People's Court on Several Issues Concerning the Appropriate Law in the Trial of Private Lending Cases". Subsequently, the "Nine People's Minutes" were issued to regulate private lending behavior and crack down on "routine loans". ”, “high-interest on-lending”, “professional lending” and other lending practices.

How to know whether the company you are borrowing from is legal? First, you must understand the loan agreement between the company you are borrowing from and your loan agreement, and verify whether the lender has the financial qualifications.

What is private lending

The act of financing between a lender and a borrower engaged in loan business without the approval of the financial regulatory department. The subjects include natural persons, legal persons and other organizations. .

How to judge the invalidity of private lending contracts and determine it

1. Lending at high interest rate

Extracting credit funds from financial institutions or borrowing from other enterprises or from the unit Funds raised by employees are then lent to others for profit.

The identification standard is: 1gt; the loaned funds are not the lender’s own legitimate funds, or at the time of lending, there are still arrears from financial institutions or other enterprises or funds raised from the employees of the unit.

2gt; Making a profit after lending it to others.

2. Professional lending

Private lending activities conducted by lenders who do not obtain lending qualifications in accordance with the law but are engaged in private lending.

Determination standard: The same lender makes multiple loans to unspecified people within a certain period of time.

Please refer to local government regulations for details. For example, in the Hebei case, if a lender has more than ten private lending cases in the same district court within a year, its lending behavior is repetitive and regular, and the purpose of the borrowing is commercial, it is engaged in illegal financial business activities and constitutes illegal lending. Identified as a professional lender; the private loan contract signed between it and the borrower is invalid.

3. Routine loans

Generally speaking, when you hear about routine loans, you should be able to think of what they are. Routine loans are usually made through "false increase of debt", "falsified evidence", " "Maliciously creating breach of contract", "charging high fees" and other illegal misappropriations of finances.

Determination standard: The lender transfers the money to the borrower through the loan agreement and then returns it to the lender, creating the illusion that the loan has been actually delivered.

4. Illegally absorb public deposits, absorb public deposits and other illegal fund-raising funds in disguised form and distribute them to private loans.

Determination standard: Has been convicted of the crime by the court.

5. Violate social and public order or other violations of the validity of laws and administrative regulations.

You must know how to resolve an invalid private loan contract

1. Only the principal is paid, without interest, and the principal is calculated based on the actual amount received.

2. The guarantor shall not be jointly and severally liable for the principal and interest.

At the same time, in order to purify the financial environment, the China Banking and Insurance Regulatory Commission has issued the "Notice of the China Banking and Insurance Regulatory Commission on the work of the banking and insurance industries in the special fight against gangs and evil", and has also issued regulations on the banking and insurance industries. A special campaign to combat organized crime and evil has been carried out and arrangements have been made. The banking industry will severely crack down on illegal lending, illegal deposit-taking, illegal loan collection and illegal campus loans.