This is legal. Peer-to-peer lending is a form of private lending, that is, private lending concludes a loan contract in the form of a network contract, and fulfills the contractual obligations of providing loans and repaying principal and interest through the network. Peer-to-peer lending is protected by law, but the online lending platform provider cannot be required to bear the guarantee responsibility, and it depends on whether it is stated in the service agreement.

1. What are the illegal acts of online lending institutions?

Peer-to-peer lending information intermediaries shall not engage in or accept the entrustment to engage in the following activities:

(1) financing for oneself or financing in disguised form;

(2) directly or indirectly collecting funds from the lender;

(3) Providing guarantee or guaranteeing principal and interest to the lender directly or in disguised form;

(4) Making or entrusting or entrusting a third party to publicize and promote financing projects in physical places other than the Internet, fixed telephones, mobile phones and other electronic channels;

(5) Granting loans, except as otherwise provided by laws and regulations;

(6) The term of the financing project;

(seven) to raise funds by issuing financial products such as wealth management, and to sell financial products such as bank wealth management products, brokerage asset management products, funds, insurance and trust products as agents;

(8) Asset securitization or transfer of creditor's rights in the form of packaged assets, securitized assets, trust assets and fund shares;

(9) Mixing, bundling or acting as an agent with other institutions in any form, such as investment, consignment, brokerage, etc., except as permitted by laws, regulations and relevant provisions on interbank lending;

(10) The authenticity and profit prospects of the financing project, concealing the defects and risks of the financing project, making false and one-sided propaganda or propaganda by vague language or other deceptive means, fabricating and disseminating false or incomplete information, and harming the interests of the financing project. The commercial reputation of others, misleading lenders or borrowers;

(1 1) Providing information intermediary services for financing high-risk derivatives such as stock investment, over-the-counter fund allocation, futures contracts and structured products;

(12) Engaged in equity crowdfunding and other businesses;

(13) Other activities of peer-to-peer lending are prohibited by laws, regulations and relevant regulations.

Second, what are the consequences of online lending?

1, resulting in overdue charges:

After overdue, the system will charge a penalty interest, and the interest rate of the penalty interest will generally be higher than the agreed interest rate of the loan. If the customer has been in arrears, the longer the overdue time, the more repayment, and the greater the repayment pressure of the customer.

2. Affect personal credit:

The platform will report the overdue situation to big data, resulting in personal credit damage; If the lending institution of online loan cooperation accesses the central bank's credit information system, the platform is likely to report the overdue situation to the central bank for credit information, leaving a bad record in the customer's personal credit information report, which will affect the customer's personal credit information.

3. Subsequent credit is frozen:

Because most of the information between online loans is interoperable, if customers later go to other platforms to handle online loans, once the platform finds bad records in the customer's big data, it is likely to refuse to approve loans; In addition, if the credit report is overdue, the customer's subsequent credit business in banks or other licensed consumer finance companies will also be hindered by the credit problem.

Legal basis: Article 22 of the Supreme Court's Provisions on Several Issues Concerning the Trial of Private Lending Cases stipulates that both borrowers and lenders form a lending relationship through the peer-to-peer lending platform, while the provider of the peer-to-peer lending platform only provides media services, and the people's court will not support it if the parties request it to assume the guarantee responsibility.

The people's court shall support the online loan platform provider who expressly provides a guarantee for the loan through websites, advertisements and other media or has other evidence to prove that the lender requests the online loan platform provider to assume the guarantee responsibility.