Research On The Legal Problems Of Private Lending

Private loan is an important part of financial system in China. Considering of the financial safety, macro-control and private loans risk, private loan has been taken excessive regulation policy in our country, but which did not affect its long-term and sustainable "vigorous development". In recent years, private loan scale has the trend of increasing, especially in Guangdong, Zhejiang, Jiangsu provinces and other coastal areas, showing a thriving scene."Analysis of the Private Loan in China ", the report which is made by CICC Research Department, points out that, to the mid of2011, the total amount of our country’s private loans is estimated to reach3.8trillions Yuan, equivalent to7%of the total amount of bank loans.Taking the examples of Wu Ying case in Dongyang county, Zhejiang province, and Liren Group case in Wenzhou county, this article points out that, for lacking of corresponding laws and regulations on private loan in our country, poor management or policy adjustment may cause the borrowers and lenders in great trouble, damaging lenders interests seriously, threatening the social harmony and stability."Wu Ying case reflects the development of private loan can’t adapt to the demand of economic and social development. The question now is that enterprises, especially the miniature enterprises, need a lot of money, which can not be satisfied by the bank; meanwhile, private loan is adequate. That’s why we should do more in-depth research of the legal relationship and management principle of the private loan to protect it legally.’ Premier Wen Jiabao said in the press conference of NPC and CPPCC in2012.This paper studies the legal relationship of private loan deeply. Analyzing the status, legal system, problems to be solved of private loan, it puts forward that a standard law of private loan is urgently needed in China at present, for guiding its development correctly and reasonably. The law should focus on the monitoring of the lending process, to ensure the property interests of the both sides are not be damaged.The article is divided into three parts:Part one,"general situation of private loan in China" analyses the definition, indicates the legal characteristics, and summarizes the development scale and causes of private loan of China with groups of data.Part two,"present situation and the insufficiencies of legislation of private loan" analyses laws and regulations and judicial interpretations which related to private loan. Which mainly contained "Contract Law of Peoples Republic of China" and "Supreme People’s Court Several Opinion on Trials of Loan Cases". Points out shortages of related laws of private loan and proposes suggestions to perfect legal norm of private loan at present.Part three,"regulations of contracts of private loan and principles to deal with disputes" indicates several common problems of contracts of private loan, proposes principles which should be formed to handle the disputes of contracts of private loan.