Is the loan company legal?

The loan company is legal. However, certain conditions must be met. According to the relevant laws and regulations, institutions that engage in loan business with the approval of the People's Bank of China, hold the Legal Person License for Financial Institutions or the Business License for Financial Institutions issued by the People's Bank of China, and have been approved and registered by the administrative department for industry and commerce according to law can engage in loan business activities.

legal ground

Article 21 of the general principles of loans

The lender must be approved by the People's Bank of China to operate the loan business, hold the License for Legal Person of Financial Institution or the Business License of Financial Institution issued by the People's Bank of China, and be approved and registered by the administrative department for industry and commerce.

Article 24

Restrictions on lenders:

1. Loans must be issued in strict accordance with the relevant provisions of Article 39 of the Law of People's Republic of China (PRC) Commercial Bank on the management of asset-liability ratio. Article 40 stipulates that the conditions for granting credit loans and loans guaranteed by related parties shall not be better than those of other borrowers.