1. According to Article 6 of Several Opinions on People's Trial of Lending Cases, the interest rate of private lending can be appropriately higher than the bank's interest rate, and people in various places can grasp it according to the actual situation in the region, but the maximum shall not exceed four times (including interest rate) of similar loans from banks. Beyond this limit, the excess interest will not be protected.
2. This provision has been replaced by the Supreme People's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, and the annual interest rate has been changed to no more than 24%.
3. Legal basis: Article 28 of the Provisions of the Supreme People's Government on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases. After the principal and interest of the previous loan are settled, both borrowers and lenders will include the interest in the latter loan principal and reissue the creditor's rights certificate. If the previous interest rate does not exceed the annual interest rate of 24%, the amount stated in the re-issued creditor's rights certificate can be confirmed as the subsequent loan principal.
4. The excess interest cannot be included in the future loan principal. If the agreed interest rate exceeds the annual interest rate of 24%, and the parties claim that the excess interest cannot be included in the future loan principal, the people should support it.
5. According to the provisions of the preceding paragraph, the sum of the principal and interest payable by the borrower after the expiration of the loan term cannot exceed the sum of the initial loan principal and the interest of the whole loan term calculated at the annual interest rate of 24% based on the initial loan principal. If the lender asks the borrower to pay more, the people will not support it.
6. The interest rate of private lending can be appropriately higher than the bank's interest rate, which can be specified by local people according to the actual situation in the region, but the maximum interest rate shall not exceed four times that of similar loans of banks (including this interest rate). Beyond this limit, the excess interest will not be protected.
Extended data
Article 7 of Several Opinions on People's Trial of Lending Cases stipulates that:
Lenders may not include interest in the principal to seek high profits. If it is found during the trial that the creditor included interest in the principal to calculate compound interest, if the interest rate exceeds the limit stipulated in Article 6, the excess interest will not be protected.
Article 8 stipulates that if there is a dispute between the borrower and the lender on whether there is an agreement on the interest rate, the interest can be calculated with reference to the interest rate of similar loans from banks. If there is a dispute between the borrower and the lender over the agreed interest rate and it is impossible to prove it, the interest may be calculated with reference to Article 6 of this opinion.
Article 11 stipulates that the lender knows that the borrower borrows money for illegal activities, and its lending relationship is not protected. The illegal lending behavior of both parties can be sanctioned according to the third paragraph of Article 134 of the General Principles of Civil Law and Articles 163 and 164 of the Opinions on Several Issues Concerning the Implementation of the General Principles of Civil Law of People's Republic of China (PRC) (for Trial Implementation) (hereinafter referred to as the Opinions).
Article 12 stipulates that if the lender requests repayment in the same currency because of the loan between citizens or NT dollars, it may grant it. If the borrower does not have the same currency, he can repay in RMB with reference to the local foreign exchange adjustment price at the time of repayment. If the lender requests to repay the interest, it may calculate the interest with reference to the savings rate of China Bank at the time of repayment.
The borrowing of foreign exchange certificates shall be handled with reference to the above principles.
Article 13 stipulates that in the loan relationship, the person who only plays the role of contact and introduction does not bear the guarantee responsibility. If there is a real intention to guarantee the performance of the debt, it should be recognized as a guarantor and bear the guarantee responsibility.
Article 14 stipulates that if the lender issues an IOU in the name of the borrower, but the borrower refuses to admit it and the lender cannot provide evidence, the lender shall bear civil liability.
Article 15 stipulates that during the lending period of a partnership enterprise, if an individual borrows money in the name of a partnership organization for partnership operation, the partners shall jointly repay it; If the borrower cannot prove that the loan is used for partnership operation, it shall be repaid by the borrower.
Article 16 stipulates that if the debtor is solvent after the guarantor's loan debt expires, the debtor shall bear the responsibility; If the debtor is unable to pay off, unable to pay off or the debtor's whereabouts are unknown, the guarantor shall bear joint and several liability.