Private lending refers to a civil act in which one party lends a certain amount of money to the other party between natural persons or between natural persons and enterprises (other organizations), and the borrower repays the loan at maturity and pays interest according to the agreement. Features: 1. Private lending is a civil legal act. Lenders and borrowers form a specific creditor-debtor relationship by signing a written loan agreement or reaching an oral agreement, thus generating corresponding rights and obligations. 2. Private lending is a contractual behavior between borrowers and borrowers. Whether the borrower and the borrower form a loan relationship, as well as the loan amount, loan object and loan term, depends on the written or oral agreement between the borrower and the borrower. As long as the contents of the agreement are legal, they are allowed and protected by law. 3. The premise of the establishment of private lending relationship is the actual payment of the loan. Whether the borrower and the borrower form a loan relationship requires the lender to deliver money or other securities to the borrower in addition to the contents and meanings of the loan target, amount and repayment period, before the loan relationship can be formally established. Article 225 of the Criminal Law

Legal objectivity:

Regarding the interest rate of private lending, the Contract Law stipulates that the interest rate of borrowing shall not violate the provisions of the state on limiting the interest rate of borrowing; The judicial interpretation specifically stipulates that the maximum agreed interest rate shall not exceed 4 times the interest rate of similar loans of banks. In other words, the interest rate of private lending shall not exceed 4 times of the bank loan interest rate in the same period, and both parties can negotiate within 4 times of the bank loan interest rate in the same period. If the current annual interest rate of one-year bank loans is 5.85%, the annual interest rate of one-year private lending shall not exceed 23.4%. It can be concluded that the loan interest rate within 4 times of the bank's loan interest rate in the same period belongs to the legal interest rate, and the loan interest rate above 4 times belongs to usury, and the usury part is not protected by law. There is no mandatory requirement for the interest of private lending by law, and whether it is paid or not shall be agreed by both parties. If the parties have an agreement on interest, the borrower shall pay interest in accordance with the agreement; If the parties have no agreement on interest or the agreement is unclear, it shall be deemed that interest is not paid. Therefore, if the lender wants to charge interest, it must have a clear agreement on interest, otherwise it will be treated as interest-free. Even if the loan is interest-free, if the borrower fails to repay it within the time limit, the lender has the right to demand payment of overdue interest; Or the irregular interest-free loan has not been repaid after being urged, and the lender demands to pay the urged interest, the interest can be calculated with reference to the bank's interest rate of similar loans.