Provisions for companies to borrow money from individuals

Legal analysis: The effectiveness of the company's borrowing from individuals is legal in law. It belongs to private lending stipulated by law and can be used for financial lending between natural persons and organizations. Therefore, enterprises can borrow from individuals, but the law will limit usury.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 1 Private lending as mentioned in these Provisions refers to the financing behavior among 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.