The law does not stipulate how much interest belongs to it, but the latest provisions of the Supreme People's Government on several issues concerning the application of law in the trial of private lending cases point out that if the agreed interest is between 24% and 36% per annum, the borrower cannot demand the return of the paid interest, and if the borrower has not paid it, the lender can only demand the return of the interest according to the standard of 24% per annum.

Two thirds is the monthly interest rate of 2.3%, which is 2.3%× 12=27.6% if converted into annual interest rate.

If the interest has not been paid, the lender may be required to calculate the interest at an annual rate of 24%.

According to the provisions of Article 26 of the Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, if the interest rate agreed by both lenders and borrowers does not exceed 24% per annum, the people shall support it. The annual interest rate does not exceed 24% (the converted monthly interest rate is 2%), which is the red line of private lending. If this red line is exceeded, the lender cannot request legal protection. That is, the interest that does not exceed 24% of the annual interest rate is a judicial protection zone.

At the same time, the second paragraph of this article stipulates that if the interest rate agreed between the borrower and the lender exceeds the annual interest rate of 36% (the converted monthly interest rate is 3%), the interest agreement in excess is invalid. If the borrower requests the lender to return the interest paid in excess of 36% per annum, the people shall support it. That is, if the interest paid by the borrower exceeds the annual interest rate of 36%, the lender may be required to return the excess. Interest exceeding the annual interest rate of 36% is also called invalid zone.

If the agreed annual interest rate is between 24% and 36%, this part is also called natural debt zone. That is, if the interest rate agreed between the borrower and the lender is within the local area, and the borrower has paid the interest according to the local standard, the lender may not return part of the interest that exceeds the annual interest rate of 24% to 36%, but if the borrower fails to pay the interest according to the interest rate agreed in the local area, the lender may require that the interest be calculated and collected according to the standard of the highest annual interest rate of 24%. Simply put, interest lies in this aspect. If the borrower can't ask for the return of the interest already paid, if the borrower hasn't paid it yet, the lender can only ask for the interest to be calculated at an annual rate of 24%.

The image memory of interest rate of private lending can be understood through three regions and two lines. The three areas are: protected areas with annual interest rate not exceeding 24%, ineffective areas with annual interest rate exceeding 36%, and natural debt areas with annual interest rate exceeding 24%- 36%. The two lines are: annual interest rate of 24% and annual interest rate of 36%.

Extended data

Provisions of the Supreme People's Government on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 26 If the interest rate agreed by both borrowers and lenders does not exceed 24% per annum, and the lender requests the borrower to pay interest at the agreed interest rate, the people shall support it.

The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. If the borrower requests the lender to return the interest paid in excess of 36% per annum, the people shall support it.

Article 28 After both borrowers and borrowers settle the principal and interest of the previous loan, they will include the interest in the principal of the latter loan and issue a new certificate of creditor's rights. If the previous interest rate does not exceed the annual interest rate of 24%, the amount specified in the reissued creditor's rights certificate can be confirmed as the later loan principal. 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.

According to the calculation in 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.

Article 30 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. The lender may choose to claim overdue interest, liquidated damages or other expenses, or both, but the people will not support the part that exceeds 24% of the annual interest rate.

Article 31 If the borrower pays the interest voluntarily or pays the interest or liquidated damages at a rate exceeding the agreed interest rate, it will not harm the interests of the state, the collective and the third party. If the borrower requests the lender to return the interest on the grounds of unjust enrichment, the people will not support it, except that the borrower requests to return the interest exceeding 36% of the annual interest rate.

Article 32 The borrower may repay the loan in advance, unless otherwise agreed by the parties. If the borrower repays the loan in advance and advocates calculating the interest according to the actual loan period, the people should support it.