The Role Of Notarization In Folk Lending Practices

Folk lending as a fast and efficient way of financing, which play a decisive role in promoting economic development and expand private investment channels. At the same time, most of borrowing parties are lack of legal consciousness, and China’s existing laws on private lending does not stipulate the system of debit and credit, which resulting in very casual in a loan contract and not standardized, and even the existence of illegal ingredients. With the increasing enlargement of private lending and borrowing disputes of the scale, there is an urgent need for a mechanism similar to the intermediary properties to guard against the risk, reduce disputes. And the notary as "legal proof mechanism to prevent disputes, reduce litigation", just in the objective demand emerge as the times require.Firstly, from the perspective of borrowing and combining the concrete case, elaborated at the same time in the related legal issues of private lending and the existing problems, a detailed analysis of the necessity and function, the notary public in borrowing the legal risk prevention role in regulate private borrowing. Secondly, in view of the important role played by non-governmental lending in notarization, from the legislative, theoretical research and notary practice should make efforts in terms of analysis of how to give full play to the role of notarization in private lending. Finally, the conclusion part summarizes and concludes the main conclusions.