Legal basis: "Reply on How to Confirm the Effectiveness of Lending between Citizens and Enterprises" Lending between citizens and non-financial enterprises belongs to private lending, and it can be considered as effective as long as the intentions of both parties are true. However, in any of the following circumstances, it shall be deemed invalid:
1, the enterprise illegally raises funds from employees in the name of borrowing;
2. Enterprises illegally raise funds from the society in the name of borrowing;
3. Enterprises issue loans to the public in the name of loans;
4. Other acts in violation of laws and administrative regulations.