Both private lending institutions and formal lending institutions will agree on loans overdue fees. Once the lender fails to perform, it will charge loans overdue fees according to the contract. So is the loans overdue fee legal? Let me tell you something. Regarding the legality of loans overdue fees, the explanation of overdue penalty interest rate was found in the People's Bank of China. The default interest rate of overdue loans is 30%-50% higher than the loan interest rate agreed in the loan contract, and the interest that the lender cannot pay on time is also compounded at the default interest rate. Therefore, loans overdue fee is legal, and overdue penalty interest is the legal basis of loans overdue fee. And agreed on the loan interest and liquidated damages, loans overdue did not repay, and the creditors claimed both interest and liquidated damages, which was also supported by the court. So, does it make sense for loans overdue to pay a "sky-high price"? How much is the daily overdue fee legal? First of all, let's understand the calculation formula of loans overdue fee: loans overdue fee = payable amount × daily interest rate × overdue days. Many lending institutions charge loans overdue with compound interest according to the daily interest rate of 65,438+0% of the total unpaid price in the current month, plus the interest that should have been charged. In this way, long-term overdue, interest will roll and become sky-high. However, it can be seen that the fees charged by these lending institutions are too high, more than four times the bank interest rate, which is illegal. For overdue behavior, it is understandable that the lending institution platform charges a certain overdue fee, which is a punishment and warning for the borrower's breach of contract, and the loans overdue fee is legal. However, if the overdue fee is too high, it will violate the essence of setting this warning rule, and it is even more impossible to use the overdue fee as a means of profit. The overdue fee exceeds the upper limit standard stipulated by relevant laws and regulations in China, otherwise it will be invalid and will not be protected and supported by law.