Research On The Legal Issues Of Private Lending

After China’s reform and opening up,private lending,as a supplementary form of formal finance,has played an increasingly important role in social life.This new type of financing solves the problem of financing difficulties for small and medium-sized enterprises and indicates the free funds in the society.The correct investment direction has greatly improved the operational efficiency of social capital,and the financial sector has become more active.However,with the frequent outbreak of private lending crisis,the problems existing in private lending have also gradually emerged,which has affected social stability.This paper mainly studies the three problems that the interest rate ceiling does not meet the market demand,the legal risk of P2 P network borrowing,and the effectiveness of guarantee-type private lending.By analyzing the factors affecting the upper limit of interest rates,they put forward reasonable opinions on the establishment of interest rate caps from five perspectives: economic development status,whether or not to register,the purpose of borrowing,the duration of borrowings,and the amount of borrowings,and compared various viewpoints to the point that secured private lending contracts are effective.The non-typical guarantee contract of Li Ning analyzed the legal risks of P2 P private lending from the angles of lenders,borrowers and network platforms and put forward related regulatory opinions.