Second, be cautious as a guarantor. The person who appears in the name of the guarantor on the IOU shall bear the guarantee responsibility, not just the witness, and shall bear the repayment responsibility when the debtor fails to repay.
Third, usury. Private lending should abide by the maximum interest rate prescribed by law. If the lender agrees to pay high interest when lending funds, the annual interest rate exceeding 24% will not be protected.
Fourth, stay away from illegal fund raising. Borrowers who borrow a large amount from an unspecified public may constitute crimes such as illegally absorbing public deposits or fund-raising fraud. When lending funds, the lender shall investigate the borrower's credit status and examine whether the borrower is engaged in illegal fund-raising activities.
5. Illegal debts are not protected by law. Break-up fees caused by improper relationships between men and women, entrustment fees caused by "looking for a relationship trustee" and gambling debts caused by gambling are all illegal debts, and even if an IOU is signed, it is not protected by law.
6. Over the limitation period. After the loan expires, the lender shall actively claim the creditor's rights. If the lender has never claimed the creditor's rights within two years after the loan expires, the borrower may claim that the loan has expired without returning it.
Seven, the signing of commercial housing sales contracts to obtain loans should be cautious. The lender shall guarantee the performance of the debt by means of legal guarantee such as mortgage. If the lender only signs a commercial housing sales contract with the borrower or distrains the real estate license as a loan guarantee, it should generally be handled as a private lending relationship. If the parties advocate auctioning the subject matter of the sale contract to repay the loan, they can support it.
Eight, false litigation. The court may take compulsory measures such as fines and detention for those who are found to belong to false litigation, and shall also bear criminal responsibility if the case constitutes a crime.
As a financing method with abundant resources and simple operation, private lending has alleviated the contradiction of insufficient bank credit funds to a certain extent and promoted economic development. But it is obvious that the randomness and risk of private lending can easily lead to many social problems. Borrowing money from private individuals is mostly a semi-public or even secret fund transaction. Both borrowers and borrowers only rely on so-called credibility to maintain. The loan procedures are incomplete, there is no secured mortgage and there is no reliable legal guarantee. Once the situation changes, it is easy to cause disputes and even criminal offences. From this point of view, private lending must also be standardized and gradually brought into the track of legalization.
In order to avoid unnecessary economic disputes between borrowers and lenders and protect the economic interests of creditors, we need to pay attention to the following aspects:
Only legal loan relationship can be protected by law. If the borrower knows that the loan is used for fraud, drug trafficking, drug abuse and other illegal activities, the national laws will not protect it, and the lender will not only get the creditor's rights, but also be punished by civil, administrative and even criminal laws. If one party takes advantage of others' danger, or uses fraud, coercion and other means to make the other party borrow money against his will, it is an invalid civil legal act, and the responsible lender can only recover the principal.
In real life, some lenders often refuse to issue written documents because the other party is a relative or friend, out of respect or out of trust. In this way, once the borrower denies it, it is difficult for the lender to protect the creditor's rights. Even if you go to court, you will end up losing because you can't prove it. Therefore, the lender must conclude a written loan agreement with the borrower, indicating the name, loan type, currency, amount, time, term, purpose, interest rate, repayment method, guarantor and liability for breach of contract, and sign it, with each party holding one copy and keeping it properly.