Because of the low threshold and simple procedures, private lending is loved by most people. However, the interest rate of private lending is often high, and even some online lending platforms have usury. The state has introduced many regulatory policies to regulate the private lending market. Recently, the Supreme People's Court announced a new judicial protection ceiling for private lending interest rates, and the new regulations erased the interest rate standards of "24%, 36%" and "two lines and three districts". In the past, the loan interest rate divided the private lending interest rate into three ranges, with two interest rates of 24% and 36%. The annual loan interest rate is within 24%, and the loan interest rate between 24% and 36% is neither legal nor illegal. If the loan interest rate exceeds 36%, it is usury and illegal.

This interest rate policy has been implemented since 20 15, but according to the latest policy, the "two lines and three zones" based on 24% and 36% will be erased. The new interest rate is based on the LPR announced by the central bank, and the maximum annual interest rate cannot exceed 4 times of the 1 year LPR interest rate. According to the latest LPR interest rate announced by the central bank, the one-year LPR interest rate in China is 3. Compared with the previous interest rates of 24% and 36%, the interest rate of private lending dropped significantly.

However, this does not mean that it is illegal for private lending rates in China to be higher than 15.4%, because the LPR interest rate is not fixed. This interest rate is the loan market interest rate, which is calculated by 18 commercial bank by referring to the loan interest rate of its quality customers. The central bank publishes the latest LPR interest rate every month. If the LPR interest rate changes, the upper limit of private lending interest rate will also change.

It can be seen that the judicial constraint of the state on the interest rate of private lending is getting stronger and stronger, and the decline in loan interest rate is good news for the majority of borrowers, but it may be affected to some extent for some lending institutions. At present, the daily interest rate of some well-known lending institutions is 0.05%, and the converted annual interest rate is 18%. Obviously, the loan interest rate of these institutions is higher than the upper limit of judicial protection interest rate. If they want to stay in business, they need.

Although the state's supervision of private lending is becoming more and more strict, some informal lending platforms will inevitably appear. Therefore, when applying for a loan, you must pay attention to choosing a formal institution so as not to cause losses to yourself.