Usury, that's it.
Although China's law clearly stipulates that "legal lending relationship is protected by law", not all private lending is protected by law.
Next, I will tell you some common sense about private lending in two minutes. I hope you can grasp it clearly so as not to fall into the trap.
1, legal private lending is protected by law.
Knowing that the other party's purpose of borrowing money is illegal, you lend it to him, which is not only unprotected, but also sanctioned by relevant laws.
If a person takes advantage of a person's danger, or uses fraud, coercion and other means to make the other party borrow against his will, the responsible lender can only recover the principal.
2. How to calculate the interest of private lending 1?
Usually, the monthly interest rate is 1 min, that is, 1%, and the annual interest rate is 1%* 12= 12%. If you borrow 1 1,000 yuan, the annual interest rate is 1200 yuan.
The annual interest rate is 1 min, that is, the annual interest rate is 10%, and the annual interest rate of 1000 yuan is 1000 yuan.
3. How to define usury?
Usury is actually just a conventional word, which is not clearly defined and explained in law.
Therefore, it is actually difficult to define. At first, it was compared with the bank loan interest rate, which was generally four times higher than the bank loan interest rate in the same period. It belongs to usury and is not protected by law.
The latest definition standard is the "Provisions on the Trial of Private Lending Disputes" issued according to the Supreme Law 20 15, in which two key figures should be remembered: 24% and 36%.
For example, if Lao Wang borrows money from you, and the annual interest rate is agreed not to exceed 24%, then Lao Wang will cheat and pay back the money. If you go to court to sue him for returning the principal and interest, the court will support it.
If the agreed annual interest rate is 30%, it is different at this time. More than 24% of the courts will not support it, but if it has been handed over before, the court will not interfere.
If the agreed annual interest rate exceeds 36%, it belongs to the so-called usury, and the court will rule that the excess interest is invalid.
However, in reality, many usury companies often make the loan contract less than 36% interest in the name of fees, or yin and yang contracts, so as to avoid future loan disputes, which requires special care!
4. There are three situations that need attention.
Finally, there are three situations that need attention (especially when writing IOUs): if there is no interest agreement in advance or the agreement is unclear, it is regarded as an interest-free loan;
For prepayment, unless otherwise agreed, the interest shall be calculated according to the actual loan term; Interest is included in the principal to calculate compound interest, that is, rolling interest is not protected by law.