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Four Types of Invalid Lending Contracts in Private Lending

Time: 2012-12-28         Source: Rong 360 original         Author: bamboo

        In general,Private lendingIt is legal, but it must be within the scope permitted by law, otherwise it is not protected. The interest rates for private individual lending are determined by both the lender and the borrower, but the interest rates negotiated between the parties must not exceed the national regulations. Borrowings between citizens and businesses can be considered as effective as long as the parties express their intentions. In practice, one of the following circumstances shall be deemed invalid:

(1) Enterprises illegally raise funds from employees in the name of loans.

(2) Enterprises illegally raise funds from the society in the name of loans.

(3) Enterprises are issued to the public in the name of loansloan.

(4) Other borrowings that violate laws and administrative regulations.

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