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- Supreme Law: The private lending rate exceeds 36% partially invalid! A brief summary! In the past 20 years, private lending has been applied to the judicial interpretation in 1994 and the general rules for loans in 1995. The Supreme Court's judicial interpretation formally issued the document as the name of private lending; the general rules for loans have entered history! Loans between enterprises are not always invalid! To the people...
Four Types of Invalid Lending Contracts in Private Lending
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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