Study On The Legal Problems Of Folk Lending Rate In China

Whether it is business or personal, if want to develop, there is no financial support, it is impossible to achieve the goal you want to, but the enterprises and individuals in order to solve the problem of shortage of funds, the loans from formal financial institutions fail circumstances, will inevitably find borrowingto solve the problem of capital.In our country, folk lending this phenomenon along with the development of social economy and the formation and growing, has now reached a large scale. But the folk lending is just like a double-edged sword, solve part of small and medium-sized enterprises and individuals of a shortage of funds difficult itcan be to a certain extent, but because of the lack of relevant system and supervision, folk lending is also easy to produce some bad socialphenomenon. Folk loan borrowers are generally faced in urgent need of money, and not through the state-owned bank loans when the thought of folk loan. But this time, the lender for the pursuit of interests, there must be higher than the formal financial institutions to lend to borrowers to several times theinterest rate. When the borrower can not timely repayment or unable to bear the high interest rates of interest, the lender will adopt a non normal meansback to the loan, such as debt to borrowers by illegal detention, intentional injury and underworld behavior. And when to reap high profits lenders through borrowing, they tend to expand lending quotas and range, in their own funds,will inevitably produce fund-raising phenomenon, finally will become illegal absorbing deposit, fraud and other criminal acts.Due to borrowing in the study of the academic circle in China relatively late.whether should give private lending a legitimate status, laws and regulations of our country has not given a clear answer, but according to China’s nationalfolk lending reality, China’s laws and regulations should give private lending alegitimate position. If the law gives the legal status of private lending, private lending is prescribed by the national unified standard rates? Or let the market determine the interest rate according to the demand for funds? This is one ofthe problems to be solved in this paper; if the law has given China’s private lending legal status, and how should the legislation to prevent other folk lending may lead to? This paper mainly discusses is how to perfect our countryfolk loan legislation to solve the problem of private lending. This thesis consists of the interest rate in our country’s borrowing five chapters to carry on the research, outlined as follows:...