Article 679 of the Civil Code stipulates the borrower's responsibility for overdue repayment. The parties may make an agreement on the issue of overdue interest in the contract, which may be an agreement between natural persons on whether to collect overdue interest or how much overdue interest rate is, or the determination of overdue interest rate between financial institutions and borrowers within the scope prescribed by the state. If the financial institution does not agree on the overdue interest rate when borrowing, then the financial institution will charge the borrower overdue interest at the interest rate stipulated by the relevant state. Article 676 of the Civil Code of People's Republic of China (PRC) If the borrower fails to repay the loan within the agreed time limit, it shall pay the overdue interest in accordance with the agreement or the relevant provisions of the state.

Article 28 of the Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases: If there is an agreement between the borrower and the lender on the overdue interest rate, such agreement shall prevail, but it shall not exceed four times the listed interest rate of one-year loans when the contract is established.

If the overdue interest rate is not agreed or clearly agreed, the people's court may handle it according to different circumstances:

(a) the people's court shall support the lender's claim that the borrower should bear the liability for breach of contract for overdue repayment with reference to the interest calculated by the one-year loan market at that time from the date of overdue repayment;

(2) If the interest rate during the loan period is agreed, but the overdue interest rate is not agreed, the people's court shall support the lender to claim that the borrower shall pay the interest during the capital occupation according to the interest rate during the loan period from the date of overdue repayment.