Specific analysis of the specific situation.

The situation that interest exceeds the principal does exist. As long as the term of your loan is long enough, the interest on your loan may exceed the principal. Interest exceeding the principal does not mean that it is illegal, because it mainly depends on the interest rate of the loan.

China clearly stipulates that the loan interest rate should not exceed 24% per annum, which is a legal interest and should be supported by the people.

If the loan interest rate exceeds the annual interest rate of 36%, the excess is invalid and the borrower does not need to repay. If the borrower has paid the interest, he can also ask the lender to return it, and the people should also support it.

As for the part where the loan interest rate exceeds 24% but does not exceed 36%, there is no clear stipulation. If the borrower pays, the lender can also charge.

Therefore, as long as the interest rate you apply for a loan does not exceed the annual interest rate of 24%, even if the interest exceeds the principal, it is ok and legal.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 674 The borrower shall pay interest at the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and cannot be determined according to the provisions of Article 510 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan term is more than one year, it shall be paid at the end of each year; if the remaining term is less than one year, it shall be paid together with the loan.

Article 675 The borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.

Article 676 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 680 usury is prohibited and the loan interest rate shall not violate the relevant provisions of the state.

If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest.

If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.

Can the interest of private lending exceed the principal?

The interest of private lending can exceed the principal. When the loan term of the lender is long enough, the interest of the loan will exceed the principal. It does not mean that the interest exceeds the principal, as long as the interest rate agreed by both borrowers and lenders does not exceed 4 times the bank's loan interest rate for the same period. However, in private lending, if the debtor includes interest in the principal to calculate compound interest, and the interest rate exceeds four times that of similar loans of banks, the excess interest is not protected by law. Article 680 of the Civil Code of People's Republic of China (PRC) prohibits high-interest lending, and the lending rate shall not violate the relevant provisions of the state. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.

Can interest exceed the principal?

Of course. When the loan term of the lender is long enough, the interest of the loan will exceed the principal. Interest exceeding the principal does not mean that it is illegal, as long as the interest rate agreed by the borrower and the lender does not exceed 24% of the annual interest rate, it is legal.

China clearly stipulates that the loan interest rate should not exceed 24% per annum, which is a legal interest and should be supported by the people. If the loan interest rate exceeds the annual interest rate of 36%, the excess is invalid and the borrower does not need to repay. If the borrower has paid the interest, he can also ask the lender to return it, and the people should also support it. As for the part where the loan interest rate exceeds 24% but does not exceed 36%, there is no clear stipulation. If the borrower pays, the lender can also charge.

Consequences of overdue repayment of online loans:

1, and bear high overdue fees. For overdue fees, different online lending platforms have different names and different charging standards. Whether it is called overdue penalty interest, overdue management or other various names, the charging standard is very high. Therefore, those who have the ability to repay on time should never be overdue.

2, undertake the platform fancy collection. The collection is generally divided into three stages: the first stage, just a few days after the overdue, the platform customer service MM will gently remind you that it is overdue, please repay it on time; In the second stage, if it is overdue for a long time, the platform customer service will seriously warn that the threat of overdue will face serious consequences; In the third stage, it was overdue for a long time, and the platform stopped trying to convince the other party and began to take practical actions.

3. The credit information of China People's Bank is tainted. At present, most online lending platforms have not been connected to PBOC's credit information system, but it has become an inevitable trend to connect to PBOC's credit information system. In the future, if the online lending platform fails to repay the loan within the time limit, it will be recorded in the credit information system of the People's Bank of China, just like bank loans and credit cards that are overdue, causing credit stains. If the previous consequence is only losing face, then the stain of credit information will affect real life, and there is no way to borrow money if you want to buy a house, no way to mortgage if you want to buy a car, and so on.

The defendant went to court. After the loan is overdue for a long time or deliberately not repaid, the amount exceeds 2000, which can already constitute a crime and is in danger of being sued by the online lending platform. Once the online lending platform wins the case, the borrower not only has to pay the money that needs to be repaid, but also pays the litigation costs and huge fines of both parties, and even faces jail time.