Loan relationship and guarantee relationship

Lending relationship: refers to lending between citizens, citizens and legal persons, and citizens and other organizations. As long as the opinions of both parties are true, it can be considered effective, and the mortgage generated by the loan is also effective accordingly, but the interest rate shall not exceed the relevant interest rate stipulated by the People's Bank of China. Private lending is divided into private individual lending activities and lending between citizens and financial enterprises. No matter what kind of loan, the interest rate cannot exceed 4%, otherwise our civil law will not protect it. Private lending can be paid or unpaid, and whether it is paid or not is agreed by both parties. The lender can only ask the borrower to pay interest when repaying the principal if it is agreed in writing or orally in advance.

Guarantee relationship: refers to the relationship established by law to ensure a specific creditor to realize his creditor's rights and urge the debtor to perform his debts with the credit or specific property of the debtor or a third party.