[Case Summary]This case involves a civil loan dispute. Xiao * and Li * are friends. In September 2017, Li * claimed that he urgently needed funds for working capital and borrowed 110,000 yuan from Xiao * in multiple bank and Alipay transfers. Li * issued a promissory note stipulating that he would repay 4,500 yuan in interest each month. However, Li * only paid two months' interest and then refused to repay the loan, claiming that the two parties were not in a loan relationship. Xiao * entrusted Hengluo Law Firm to sue Li *. The court accepted the promissory note and confirmed the existence of a loan relationship, ruling that Li * should repay the loan principal of 101,000 yuan and the overdue interest of 3,542 yuan. The court also ordered Li * to bear the case acceptance fee of 1,250 yuan.

I. Review of the Case Facts

Lenders often ask, "What should I do if the borrower denies the loan relationship?" and "Can only transfer records be used to determine the existence of a loan?". This case is a private lending dispute. Hengluo Lawyer represented Xiao * as the plaintiff. Xiao * and the defendant Li * were friends. On September 10, 2017, the defendant claimed to urgently need funds for working capital and borrowed money from the plaintiff. The plaintiff transferred 110,000 yuan to the defendant in multiple installments via bank transfers and Alipay transfers. On September 11, 2017, the defendant issued a promissory note to the plaintiff, agreeing to pay interest of 4,500 yuan per month. However, the defendant only paid two months' interest and stopped making payments thereafter. The plaintiff urged the defendant to repay the loan, but the defendant repeatedly made excuses to delay repayment and has still not returned the money to the plaintiff to this day.

The defendant, Li *, said, "I did business with the plaintiff. I wrote a note to repay him the money, but it wasn't interest. I did receive 110,000 yuan, but 4,500 yuan wasn't interest. I repaid him 4,500 yuan every month until I paid it off completely. It wasn't interest at all. I've already repaid the plaintiff some money, but the plaintiff doesn't acknowledge it. Besides the 9,000 yuan, I also repaid other money, but I don't have any evidence." The plaintiff acknowledged receiving the 9,000 yuan, but the defendant denied that there was a loan relationship between them. Out of frustration, the plaintiff entrusted Henglue Law Firm to sue the defendant in court, demanding that the defendant return the principal of the loan and the interest on the occupied funds.

II. The focus of the case

  • Focus 1: The legal effect of promissory notes and the determination of the establishment of a lending relationship.The promissory note clearly states the loan, and the defendant failed to provide evidence to refute it.
  • Focus Two: The burden of proof for the defendant's defense of "non-borrowing relationship".The defendant claimed that it was not a loan, but failed to submit evidence to the court.
  • Focus 3: The calculation standard and starting point of overdue interest.If no default interest rate has been agreed upon, it shall be referred to the one-year LPR.

III. Professional intervention by Hengluo Law Firm

The original plaintiff claimed that:The defendant borrowed 110,000 yuan, issued a promissory note, but only paid two months' interest before delaying the repayment of the principal and interest.

The defendant argued that:The two parties are in a cooperative relationship, not a lending relationship. They have repaid some of the money but lack evidence; they have also repaid other amounts besides 9,000 yuan, but lack evidence, and they do not acknowledge the existence of a lending relationship with the plaintiff.

Legal opinion from Hengluo Law Firm:The plaintiff claimed that he lent money to the defendant and submitted a promissory note to the court to prove the existence of a lending relationship between the two parties. The promissory note clearly stated that the defendant borrowed money from the plaintiff. The defendant acknowledged that he had indeed received the disputed funds in this case, but argued that there was no lending relationship between him and the plaintiff. However, the defendant failed to submit evidence to support his claim to the court, so the court did not accept his defense argument. The promissory notes are the true expressions of the plaintiff's and the defendant's intentions and do not violate the mandatory provisions of current Chinese laws and administrative regulations, nor do they involve other circumstances that would render the contract invalid. Therefore, they should be considered legal and effective. Both parties should fully perform their respective obligations in accordance with the agreement. The promissory note in this case states that the monthly repayment amount is 4,500 yuan, which should be an agreement on installment repayment. According to the law, if the parties do not stipulate the overdue interest rate in the loan agreement or the stipulation is unclear, and the lender claims that the borrower should bear the liability for breach of contract on overdue repayment by referring to the one-year loan market quotation interest rate standard from the date of overdue repayment, the people's court shall support it.

IV. Outcome of the case

After the trial, the court adopted some of the opinions and claims supported by Hengluo Lawyers. The court held that the IOU provided by the plaintiff could prove the existence of a lending relationship between the two parties; the defendant argued that he did not acknowledge the existence of a lending relationship, but failed to submit evidence to the court, so the court would not accept this argument. Regarding the plaintiff's claim that the defendant should pay overdue interest from December 11, 2017, the court supported it, but the interest calculation standard should be the loan market quotation rate announced by the National Interbank Funding Center, and the interest calculation base should be the amount due at that time. For the excess part, the court would not support it. In accordance with the provisions of the Civil Code and other relevant laws, the judgment is as follows: First, the defendant shall repay the plaintiff the loan principal of 101,000 yuan and the overdue interest of 3,542 yuan within ten days after the judgment takes effect; Second, the plaintiff's other claims are rejected. The case acceptance fee of 1,250 yuan shall be borne by the defendant.

5. Henglu Law Firm's Reminder

This case is represented by the professional lawyer team of Beijing Henglu Law Firm (practice license number: _________________, subject to the documents issued by the judicial administrative authority). Loans often occur between trusted relatives and friends, but trust is not just a mere promise. If you are the lender, please ensure that trust is documented: actively issuing a promissory note, using transfer methods for fund transactions, and keeping the relevant proofs are key to protecting your legitimate rights and interests.

VI. Common Questions and Answers (FAQ) about Private Lending Cases

  1. Q: What should a borrower do if they deny the existence of a loan relationship?
    A:You can use promissory notes, transfer receipts, chat records, etc. to prove the loan agreement and the delivery of the funds. If the other party denies it but has no evidence, the court will generally not support it.
  2. Q: Can only the transfer records be used to prove the existence of a loan?
    A:The transfer record can prove that the money has been delivered. If it is combined with the IOU or chat records to corroborate the loan agreement, it will be easier to be recognized by the court.
  3. Q: Is it legal to stipulate a monthly interest rate of 4,500 in a promissory note?
    A:The interest rate stipulated in the contract shall not exceed the upper limit set by the judicial interpretation. Any portion exceeding four times the one-year LPR rate at the time of the contract's formation shall not be protected.
  4. Q: How is the overdue interest calculated for private lending?
    A:If there is no agreement on the overdue interest rate, the creditor may claim the interest on the funds occupied from the date of overdue payment, calculated by referring to the one-year LPR.
  5. Q: How to sue a friend who refuses to repay the money they borrowed?
    A:Prepare evidence such as promissory notes, transfer receipts, and collection records, and file a lawsuit with the court with jurisdiction. Please note that the statute of limitations for litigation is three years.