The highest interest rate supported by the court is the annual interest rate of 24%, because the annual interest rate below 24%, including 24%, can be protected by law, but the annual interest rate between 24% and 36% is not protected by law and cannot be stopped. Interest rates higher than 36% are illegal. However, the interest rate agreed by the borrower and the borrower exceeds 36% per year, and the interest agreement exceeding the part is invalid. The borrower requires the lender to return more than 36% of the payment.

The interest of private lending is agreed by both parties, but it is not protected by law if it exceeds four times the bank loan interest rate in the same period, that is to say, it is illegal to have interest higher than four times the bank loan interest rate in the same period. If the court decides, it will only pay interest at 4 times the bank loan interest rate in the same period, and will not pay the excess.

Legal basis:

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

Article 25 If the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds four times the market quotation of one-year loan at the time of the establishment of the contract.

The "one-year loan market quotation" mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20th, 20th, 20th19th.

Article 29 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. The lender can choose to claim overdue interest, liquidated damages or other expenses, or both, but the people's court will not support the part that exceeds 4 times the quoted interest rate of the one-year loan market when the contract is established.

People's Republic of China (PRC) Civil Code

Article 670 The loan interest shall not be deducted in advance, and the loan interest shall not be deducted from the principal in advance. If the interest is deducted from the principal in advance, the loan will be repaid according to the actual loan amount and the interest will be calculated.