The Reseach On The Private Lending Legal Supervision

Private Lending can best be described as a civil legal act between investors and borrowers where each party seeks the terms and conditions most favorable to their own interests. Private Lending can also be called Citizen-to-citizen Lending, Citizen-to-enterprise Lending and Non-traditional Lending.It is a non-govenmental financial lending.With the deep-going into the WTO and the improvement of the socialist market economic system, the private lending rise rapidly by its high efficiency and low risk. Although it makes up for the deficiencies of the formal financial financing, yet it plays a very important role in the sustainable development of economy in China. However, the Private Lending also leads to a series of social problems, such as the increasing Private Lending disputes.At present, the formal laws and regulations on the Private Lending scattered in the" General Rule of Civil","Contract Law of People’s Republic of China","Illegal Financial Institutions and Clamp down on Illegal Finance Business" and "The Supreme People’s Court Several Opinions about Lending Cases" and so on. Just because of lacking special laws and regulations on the supervision and the specification, this will cause the uncertainty of Private Lending. And at the same time there is no doubt that its appearance and development has the necessity of reality. It is not difficult to find that the problem of the Private Lending legal regulation must be solved.In reality, there are many shortcomings on the Private Lending Legal Supervision, such as, The legal rules for Private Lending are too scattered; The interest rate is not reasonable; the judicial boundary between Private Lending and other illegal behaviors is not obvious; The legal supervision of Private Lending is absent, etc. Through the study of the comprehensive analysis of the above insufficient, the Private Lending Legal Supervision of our country should be improved as following aspects:Formulating reasonable Private Lending laws and regulations; Formulating reasonable Private Lending interest rate management system; Strengthening the construction of social credit system; Establishing the supervision mechanism of the Private Lending, etc.