Is it illegal for companies to borrow money from individuals?

Legal analysis: it is not illegal for companies to borrow from individuals, and the lending between citizens and non-financial enterprises belongs to private lending. As long as the meaning of both parties is true, it can be considered as valid. However, in any of the following circumstances, it shall be deemed invalid: 1. Enterprises illegally raise funds from employees in the name of borrowing money; 2. Enterprises illegally raise funds from the society in the name of borrowing; 3. Enterprises issue loans to the public in the name of lending; 4. Other acts in violation of laws and administrative regulations.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 667 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 671 Where the lender fails to provide the loan on the agreed date and amount, thus causing losses to the borrower, it shall compensate for the losses.

If the borrower fails to collect the loan according to the agreed date and amount, it shall pay interest according to the agreed date and amount.

Article 675 The borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.