On The Legal Effect And Risk Prevention Of Private Lending Contracts

Private lending is more common folk in our country, for the reason that earnings or human factors, creditors will choose to borrow according to their own economic situation. This can certainly get some interest, but because rules and regulations for lending operations are not standardized, and human relations between the creditor and the debtor, making China's private lending chaos is frequent at present. It is difficult to clarify the facts of the dispute, lender often can not going back to borrow in time, so there was a huge risk of lending itself. In addition, our country does not develop unified rules and regulations for private lending, so that even if there has been a lot of problems in the judicial practice, it is still no uniform solution and template for reference.In order to study the legal validity of the private lending contract, combined with specific case analysis and research on the legal effect?process operation of the private loan contract, the paper here discusses the theory based risk prevention methods after the affirmation of the effectiveness of the private loan contract through an in-depth study of the easy problems of the private lending contract. After the Analytical Reasoning process, the paper holds an idea that the country shall have a more effective identification on the private lending contract combined with the current legislation. In addition, the country shall perfect the obligations and responsibilities, loan interest, charges voucher. For example, endue legal position to the private lending contact, take measures including notarization of the contract, standardize and improve the guarantee mechanism, a clear statute of limitations,promote the P2P legislation and so on to prevent risks. Through the relevant norms, making the creditor and the debtor in a private loan contract, can be carried out in the relevant legal constraints, ensure the legal effect at the time of conclusion of the contract of private lending, to prevent and improve the illegal private lending contract fundamentally become orderly security of private lending to borrow from the source, lending process is relatively clear to the maximum extent, reduce the risk of private lending, when there is a problem, also can quickly find relevant responsible person, take disciplinary measures, on the way, China's private lending can develop healthy and mature, the creditor and the debtor can reach the original lending purposes.