An annual interest rate of more than 36%(3.6 points) is usury.
The Supreme People's Court's "Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" stipulates in Article 26:
If the interest rate agreed between the borrower and the borrower does not exceed the annual interest rate of 24%, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it.
The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum.
As can be seen from the above, since the Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases came into effect on September 1 2065, the standard of usury is no longer based on whether it exceeds the annual interest rate of 24%, but on whether it exceeds 36%, that is to say, it is not usury.
Extended data
Provisions on several issues concerning the application of law in the trial of private lending cases
Article 30 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. The lender may choose to claim overdue interest, liquidated damages or other expenses, or both, but the people's court will not support the part exceeding 24% of the annual interest rate.
Article 31 If the borrower voluntarily pays interest or liquidated damages without agreeing on interest, or if the interest or liquidated damages exceed the agreed interest rate and do not harm the interests of the state, the collective and the third party, the people's court will not support it, unless the borrower requests to return the interest exceeding 36% per annum. ?
China Court Network: Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases