What is meant by private lending, what are the characteristics?

Invalid circumstances:

1, the financial institutions to obtain credit funds and high-interest loans to the borrower, and the borrower knew or should have known;

2, to other enterprises or to the unit of the funds obtained by the employees to the borrower for profit, and the borrower knew or should have known;

3, lender knew or should have known that the borrower borrowed for illegal and criminal activities and still provide loans;

4, contrary to public order and morality;

4, against the social and public order and morality;

5, the borrower's loan is used for illegal and criminal activities and still provide loans. Or should know that the borrower borrowed money for illegal and criminal activities and still provide loans;

4, contrary to social order and morality;

5, other violations of laws, administrative regulations, the effectiveness of mandatory provisions.

Private lending is a kind of folk financial activity with a long history and widely existed in the world, which mainly refers to between natural persons, between natural persons and legal persons or other organizations, as well as between legal persons or other organizations and each other.

The act of financing with money or other securities. Approved by the financial supervisory authorities set up by the financial institutions engaged in the loan business and its branches, the issuance of loans and other related financial services, is not included in the scope of private lending.

Private lending and borrowing between the parties can occur between natural persons, between natural persons and legal persons or other organizations, or between legal persons and other organizations, and between them.

Where a legal person or other organization raises funds from its employees in the form of a loan within its own unit for the purpose of production and operation of the unit, the private lending contract is valid as long as there are no circumstances as stipulated in Article 52 of the Contract Law of the People's Republic of China and Article 14 of the Provisions of the Supreme People's Court on Several Issues on the Application of Law to the Trial of Private Lending Cases.

Expanded Information:

According to the "Provisions of the Supreme People's Court on Several Issues on the Application of Law in the Trial of Private Lending Cases Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases:

Article 2 When a lender files a lawsuit with the people's court, he shall provide documents of claims such as debit notes, receipts, and debt notes, as well as other evidence that proves the existence of the legal relationship between the lending and borrowing.

The people's court shall accept the case where the creditor is not stated in the documents of claim such as debit notes, receipts, and debt notes held by the parties, and where the party holding the documents of claim files a lawsuit for private lending and borrowing. If the defendant puts forward a factual defense to the creditor qualification of the plaintiff, and the people's court, after hearing, finds that the plaintiff does not have the creditor qualification, it decides to dismiss the lawsuit.

Article 3 If the borrowing and lending parties have not agreed on the place of fulfillment of the contract or the agreement is unclear, and no supplementary agreement has been reached afterwards, and if the place cannot be determined in accordance with the relevant provisions of the contract or trading practices, the place of fulfillment shall be the place where the party accepting the currency is located.

Article 4 the guarantor for the borrower to provide joint and several liability guarantee, the lender only sued the borrower, the people's court may not add the guarantor for the *** with the defendant; the lender only sued the guarantor, the people's court may add the borrower for the *** with the defendant.

Guarantor for the borrower to provide a general guarantee, the lender only sued the guarantor, the people's court shall add the borrower as *** with the defendant; the lender only sued the borrower, the people's court may not add the guarantor as *** with the defendant.

Article 5 The people's court, after filing a case, found that the private lending behavior itself is suspected of illegal fund-raising crimes, shall rule to dismiss the prosecution, and will be suspected of illegal fund-raising clues and materials transferred to the public security or procuratorial organs.

If the public security or procuratorial authorities fail to open a case, or withdraw the case after opening an investigation, or if the procuratorial authorities make a decision not to prosecute, or if the people's court determines by an effective judgment that it does not constitute a crime of illegal fund-raising, and the party concerned files a lawsuit to the people's court based on the same facts, the people's court shall accept the case.

Article 6 After the people's court has filed a case, the people's court shall continue to hear the case of private loan disputes, and transfer the clues and materials suspected of illegal fund-raising to the public security or procuratorate authorities, even though they are related to the private loan dispute case but not the same fact.

Baidu Encyclopedia - Private Lending