legal ground
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 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.
Article 10
The people's court shall support the private loan contracts concluded between legal persons, unincorporated organizations and legal persons due to the needs of production and operation, except in the circumstances stipulated in Articles 146, 153 and 154 of the General Principles of the Civil Law and Article 13 of these Provisions, if the parties claim that the private loan contracts are valid.