Legal analysis: Private lending is legal, and private lending is a civil act. As long as it does not exceed a certain scale and number of people, it is bound and protected by civil law and contract law, except for the following circumstances. According to the laws of our country, if the loan contract between natural persons stipulates to pay interest, the loan interest rate cannot violate the provisions of the state on limiting the loan interest rate. At the same time, the interest rate of private lending can be higher than that of banks, provided that it is not higher than four times the interest rate of similar loans of banks. Therefore, if the interest of private lending does not exceed 4 times the interest rate of similar loans of banks, it is protected by law, and the excess is not protected by law. Personal lending is fraudulent, which leads to the loss of the borrower's interests. The borrowing behavior violates the provisions of the contract law and has no legal effect. If the signed loan contract does not meet the requirements, both the loan contract and the loan behavior will be invalid.
Legal basis: 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.
Article 668 A loan contract shall be in written form, unless otherwise agreed between natural persons. The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.