Loans between enterprises are not all illegal. Private lending contracts concluded between enterprises for production and business needs, except for the cases stipulated in Article 52 of the Contract Law and Article 14 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, Belonging to the legal and valid Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, Article 11 The people's court shall support the private lending contracts concluded between legal persons, other organizations and between them for the needs of production and operation, except for the cases stipulated in Article 52 of the Contract Law and Article 14 of these Provisions. Article 14 In any of the following circumstances, the people's court shall consider the private loan contract invalid: (1) taking credit funds from financial institutions and lending them to the borrower at high interest, and the borrower knew or should have known in advance; (2) The funds obtained by borrowing from other enterprises or raising funds from employees of the unit are lent to the borrower for profit, and the borrower knows or should know in advance; (3) The lender knows in advance or should know that the borrower still provides loans for illegal and criminal activities; (4) Violating social public order and good customs; (five) other violations of the mandatory provisions of laws and administrative regulations. Article 52 of the Contract Law is invalid under any of the following circumstances: (1) One party concludes a contract by fraud or coercion, which harms the national interests; (two) malicious collusion, damage the interests of the state, the collective or the third party; (3) Covering up illegal purposes in a legal form; (four) damage the interests of the public; (5) Violating the mandatory provisions of laws and administrative regulations.