Is Beijing Heng Chang Microfinance Company legal?

Legal Analysis: Loans in Heng Chang are illegal, and formal lending institutions must have relevant financial licenses to legally issue loans. However, Heng Chang's loan business is strictly non-compliant because it has not obtained a financial license at present. However, the loan contract signed at the time of loan is still protected by law, and the borrower still needs to repay the loan according to the contract.

Legal basis: Article 680 of the Civil Code of People's Republic of China (PRC) prohibits high-interest lending, and the lending rate shall not violate the relevant provisions of the state. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.