Is it legal for individuals to borrow money from companies?

Legal analysis: Under normal circumstances, it is legal for individuals to borrow money from companies. Generally speaking, a company needs to meet the conditions in the articles of association and obtain the consent of the shareholders' meeting or shareholders' meeting when borrowing from individuals.

According to the first paragraph of Article 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, the private lending mentioned in these Provisions refers to the financing behavior among natural persons, legal persons and unincorporated organizations.

According to Article 667 of the Civil Code which came into effect on 202 1, a loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Legal basis: Article 1, paragraph 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases.

The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and unincorporated organizations.

Article 667 of the Civil Law of People's Republic of China (PRC) is a loan contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.