Be cautious when lending money!

Aug 18, 2023529

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This post is translated from Chinese into English through AI.View Original

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1. When writing a loan agreement, it is important to distinguish it from a debt agreement. The statute of limitations for debt agreements is three years, while for loan agreements it is twenty years. 2. Include the repayment date, loan date, and currency in the agreement. 3. The maximum annual interest rate set by regulatory authorities is 15.4% according to the regulations for private lending. Exceeding this limit may render the agreement legally ineffective (preferably stick to 15%). 4. Clearly state the identification number and full name of the person receiving the loan. 5. Use words instead of Arabic numerals when indicating the loan amount. 6. When making a transfer through a bank card, keep a record of the transaction. Alternatively, the best solution is to recommend an app when someone asks to borrow money.

1. Do not write an IOU, write a loan note.#

The statute of limitations for an IOU is only three years, while the statute of limitations for a loan note is twenty years.#

2. Write the repayment date, loan date, and currency.#

3. According to the regulations on private lending issued by the national regulatory agency, the maximum annual interest rate is 15.4%. If you write more than that, it will have no legal effect. (It is better to write 15%).#

4. Clearly write the ID number and full name of the person who received the money when borrowing.#

5. Do not write the amount in Arabic numerals, write it in uppercase.#

6. Use bank transfer and keep the transfer records.#

The best solution:
Other person: Can you lend me some money?
Me: I recommend you an app.