Because of the country the recent retrenchment, the company relatively tight liquidity, banks do not give loans, only to other units or individuals to borrow, such lending emerged, many people are very concerned the validity of borrowing, is protected by law?

   The validity of a company to other companies, loan contract
     1, between enterprise's loan contract invalid.
   Between the enterprise and the enterprise lending to each other in violation of the people's Bank of China promulgated the "loan general" the sixty-first stipulation: "the administrative departments and enterprises and institutions at all levels, supply and marketing cooperatives, cooperative economic organization, rural cooperative foundation and other foundations, financial business may not engage in deposit and loan etc.. Enterprises shall not violate the provisions of the state or a loan financing loan". At the same time, "the Supreme People's Court on business lending contract the borrower fails to repay the loan shall be approved " how to deal with the issue of enterprise loan contract clearly stipulates: "in violation of the relevant financial regulations, the contract is null and void. "therefore, business lending is illegal, the civil acts invalid from the beginning, the loan contract.
   2, a joint venture, is called the loan contract
   "The Supreme People's Court on some issues concerning joint contract dispute case to answer" fourth paragraph second: " Corporation, as a joint undertaking of a corporate direction venture investment, but not to participate in the joint operation, do not assume joint responsibility for the risk, regardless of profit and loss are also able to recover, or can receive a fixed return, is that of the joint venture, is borrowing, in violation of the relevant financial regulations, the contract should be recognized invalid. In addition to the principal can be returned, for investors have acquired or interest agreement made shall be confiscated, the other party shall be equivalent to the bank interest ". Therefore, such joint venture contract name as the pool, but the actual borrowing, it shall be deemed as invalid in accordance with the law.
   3, about the treatment of horizontal between enterprises lending
   According to "the Supreme People's Court on the enterprise lending contract lenders has not yet made an interest the people's court shall how to deal with the questions" and "reply" provisions of the Supreme People's Court on how to handle the problem of enterprise loan contract the borrower fails to repay the loan of the enterprise, to direct lending to each other and a pool, actually lending business associates, according to the following approach:
   (1) to confirm enterprise between interbank lending loan contract or a pool, is borrowing the joint venture contract invalid.
   (2) any borrower return investors.
   (3) to investors have acquired or agreed to obtain the interest to be collected, the other party shall be punished by a bank interest. In addition, since both parties agreed on the date of expiry of the repayment, to the court to determine the borrower to repay the principal expiration period of interest, shall be confiscated. The interest on debit and credit the original agreement rates, if both parties have not agreed to loan interest, calculated in accordance with the corresponding interest rates on bank loans.
   (4) the borrower fails to repay the principal judgment period, he shall pay the delayed period interest.

   Two, about the enterprise to effect personal loan contract problem
   1, the Supreme People's court in the "reply" about how to confirm the effect between citizens and business lending behavior states: "citizens and non financial enterprises (hereinafter referred to as enterprises) between lending to private lending, as long as the parties expressed their true meaning can be identified effectively. However, any of the following circumstances, shall be deemed invalid: one, to borrow the name of illegal enterprises to workers; two, enterprises to borrow the name of illegal to social capital; three, business loans to the public the name of loans; four, there are other violations of laws, administrative rules and regulations behavior."