Is the loan company legal?

Legal analysis: law. The state allows private capital to establish new compliant private lending institutions, and makes it clear that the newly established compliant private lending institutions should be legal financial institutions with the same qualifications as existing formal financial institutions; It is clear that its function is to specialize in legal private lending and serve private economic units. In this way, the law clearly defines the positioning of private lending, indicating that private lending activities and formal lending complement and promote each other, thus realizing the benign existence of private lending and formal lending. However, the interest rate of mortgage institutions cannot exceed the loan interest rate stipulated by the state.

Legal basis: Article 680 of the Civil Code prohibits high-interest loans, and the loan interest 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.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 1 The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and unincorporated organizations. These provisions shall not apply to financial institutions and their branches engaged in loan business established with the approval of the financial supervision department, as well as disputes arising from loans and other related financial businesses.