Usury is actually what we call private lending, but the interest is extremely high. Moreover, some loan sharks will agree to interest rolling, that is, using interest as the principal to calculate the interest of the next period. Therefore, usury is like snowballing, which is extremely harmful. So, how does the law define usury? What kind of private lending belongs to usury?

? Legal provisions: Article 26 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases "If the interest rate agreed by both borrowers and borrowers does not exceed 24% per annum, the people's court 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. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum. "

Detailed comments

The annual interest rate below 24% belongs to the scope of legal protection.

? Case: Party A lent Party B RMB 654.38 million, with an agreed annual interest rate of 24% and a term of one year. One year later, Party B failed to repay the principal and interest as required, and then Party A sued Party B for repaying the principal of 6,543,800+with interest of 24,000. In this case, the court fully supported Party A's claim.

The annual interest rate is between 24% and 36%, which is not protected by law and does not interfere.

Case: Party A lent Party B RMB 654.38 million, with an agreed annual interest rate of 36% and a term of one year. If Otsuichi returns the principal of 6,543,800 yuan, and the interest of 36,000 yuan is too high, the court will not support the lawsuit and B will lose the case. And if Party B fails to repay the principal and interest according to the regulations after one year, Party A will sue Party B to repay the principal and interest at an annual interest rate of 36%. Similarly, the court will not support the interest part, and the court will only support the return of the principal of 654.38+million, with a maximum interest of 24,000.

The annual interest rate of more than 36% does not comply with the law, commonly known as usury.

Case: Party A lent Party B RMB 654.38 million, with an agreed annual interest rate of 40% and a term of one year. Otsuichi returned the principal of 654.38+million yuan after the year, and the interest after 40,000 yuan was too high. Litigation A demanded to return more than 36% interest, and the court supported it, so A needed to return 6,000 yuan interest to B..