Are private lending institutions legal?

Legal analysis: Private lending intermediaries are generally legal. Intermediaries that provide media services for concluding loan contracts may collect corresponding remuneration from the entrusting party according to law. Therefore, the existence of private lending intermediary service institutions and the collection of service fees are in line with the law and protected by law.

Legal basis: Article 961 of the Civil Law of People's Republic of China (PRC), an intermediary contract is a contract in which the intermediary reports the opportunity of concluding a contract to the client or provides media services for concluding a contract, and the client pays remuneration.