Legal, the interest rate on private borrowing cannot currently exceed 15.4%, which is the upper limit of judicial protection. As long as the interest rate is below 15.4%, it is acceptable. Private lending refers to the act of financing between natural persons, legal persons, and other organizations and among themselves, rather than financial institutions and their branches established to engage in loan business approved by the financial regulatory authorities.

What is a loan deposit?

The deposit refers to the money that one or both parties to a contract retains with the other party or deposits with a third party to ensure the performance of the contract. There are two main forms of security deposits popular in real economic life: one is the security deposit required by the contract party to ensure the realization of its claims from the other party. Another form of deposit is a deposit deposited by both parties to a third party recognized by the contract (usually a notary office) to ensure the performance of their respective obligations when the contract is established.

Loan deposit return process

When applying for a house purchase loan, the developer will pay a certain deposit to the bank. After the mortgage loan is successful, the bank will return the deposit. Users need to abide by the bank's regulations to get the deposit refunded. After all the mortgages are paid off, they go to the bank to go through the relevant procedures and take the relevant materials to apply for the mortgage. If the application is successful, the deposit can be returned to the developer, and the developer will work in the next few tasks. It will be returned to the home buyer within days, and you can collect it by bringing relevant documents.

Legal basis:

Article 671 of the "Civil Code" If the lender fails to provide the loan in accordance with the agreed date and amount, causing losses to the borrower, it shall compensate for the losses.

If the borrower fails to collect the loan according to the agreed date and amount, the borrower shall pay interest according to the agreed date and amount.