According to the law, the way to apply for the invalidation of the folk loan contract is to file a lawsuit to the court to request confirmation of the invalidity of the loan contract; If there is an arbitration agreement or arbitration clause, you can also apply to the arbitration tribunal with jurisdiction to confirm that the loan contract is invalid.
 Legal basis
 Article 144 of the Civil Code of the People's Republic of China [Effectiveness of civil juristic acts performed by persons without civil capacity] Civil juristic acts performed by persons without civil capacity are invalid.
 Article 146 of the Civil Code of the People's Republic of China [Effect of false representation and concealment] A civil juristic act performed by the actor and the counterpart with a false declaration of intent is invalid.
 The validity of a civil juristic act concealed by a false declaration of intention shall be dealt with in accordance with the provisions of relevant laws.
 Article 153 of the Civil Code of the People's Republic of China [Effect of civil legal acts violating mandatory provisions and public order and good customs] Civil legal acts violating mandatory provisions of laws and administrative regulations are invalid. However, the exception is that the mandatory provisions do not invalidate the civil juristic act.
 Civil juristic acts violating public order and good customs are invalid.
 Article 154 of the Civil Code of the People's Republic of China [Effect of Civil Legal Acts of Malicious Collusion] A civil legal act in which the perpetrator and the counterpart collude maliciously and damage the legitimate rights and interests of others is invalid.