What are the risks of peer-to-peer lending?

Legal analysis: 1, lack of supervision of funding sources.

2. The bank's credit system is lacking, and overdue repayment occurs from time to time.

3. The security of the deposited funds is low, which may be misappropriated by other personnel such as websites.

4. The borrower is easily suspected of the crime of illegally absorbing public deposits and the crime of setting up financial institutions without authorization.

5. The interest rate of peer-to-peer lending sometimes far exceeds the stipulated interest rate. Once an economic dispute occurs, the lender cannot safeguard this part of the interests.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 667 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 680 usury is prohibited and the loan interest rate shall not violate the relevant provisions of the state. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.