First of all, it should be clear that the lender's imprisonment does not directly affect the validity of the loan contract. According to the loan types and contract terms, the rights and obligations between the lender and the borrower are clearly defined. For example, if the loan is a mortgage loan, the loan contract can stipulate that if the lender does not return the loan, the bank or other financial institution has the right to dispose of the collateral. In this case, even if the lender goes to prison, the borrower still has the right to dispose of the collateral according to the terms of the contract to recover the loan.
Laws and regulations also have relevant provisions on the handling of loans when lenders are in prison. Generally speaking, imprisonment does not exempt the lender from repayment responsibility. The lender still needs to repay the loan according to the terms of the contract, otherwise it may face legal recourse. However, the specific laws may vary from country to country, so it needs to be judged according to local laws.
In practice, when the lender is imprisoned, the borrower and the lender may need to negotiate to find a flexible solution. For example, the borrower can agree to suspend repayment during the lender's sentence, and the lender will continue to repay after he is released from prison. Alternatively, the two parties can negotiate to reduce the repayment pressure of the lender by reducing interest and extending the loan term. These solutions need to be based on the consensus of both parties to ensure that they do not violate relevant laws and regulations to ensure the rights and interests of both parties.