Can I not repay the online loan if the interest rate is too high? Let’s see what the court says
;? When applying for a loan, many borrowers will habitually apply for online loans. There are many advantages of online loans, such as convenient application, convenient process, required information, and low loan application threshold. However, the disadvantages of online loans are also obvious, that is, the loan interest rate is usually higher. Can I not repay the online loan if the interest rate is too high? Let’s see what the court says!
Can I not repay the online loan if the interest rate is too high? If the interest rate of the loan applied for by the customer on the online platform is too high, the customer may not repay it. The Supreme People's Court has stipulated that the annual interest rate of online loans shall not exceed 4 times the floating interest rate LPR, and any agreement exceeding the limit shall be invalid. If a customer has paid a fee that exceeds the scope, they can also ask the platform for a refund, and the people's court should support it. However, it should be noted that this provision does not apply to disputes arising from the granting of loans and other related financial services to financial institutions and their branches established with the approval of the financial regulatory authorities to engage in loan business. Therefore, the act of issuing loans by financial institutions does not belong to private lending. Generally speaking, private lending is a civil legal act entered into between other civil entities other than financial institutions engaged in loan business, with the lending of funds and the return of principal and interest as the main rights and obligations. This statement also clarifies that the Supreme Court’s judicial interpretation is for private lending and does not apply to financial institutions. The borrowers of most online loans are financial institutions such as banks, consumer finance companies or small loan companies, and the upper limit of judicial protection does not apply to most online loans. Generally speaking, as long as the loan interest rate of a financial institution does not exceed 24%, the borrower will most likely need to repay the principal and penalty interest as required. The above is the relevant content sharing on "Can I not repay the online loan if the interest rate is too high?" I hope it can help everyone! Can a debtor refuse to pay back the interest if the interest is too high?
Can the debtor refuse to pay back the interest if the interest is too high and illegal? If the lender requests the borrower to pay interest according to the interest rate stipulated in the contract, the people's court shall support the request, except that the interest rate agreed upon by both parties exceeds four times the one-year loan market quotation rate at the time the contract is established. "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" Article 25 If the lender requests the borrower to pay interest according to the interest rate agreed in the contract, the People's Court shall support it, but the interest rate agreed upon by both parties exceeds the period when the contract is established. Except for loans with a one-year term that are four times the market quoted interest rate. The "one-year loan market quoted interest rate" referred to in the preceding paragraph refers to the one-year loan market quoted interest rate published monthly by the National Interbank Funding Center authorized by the People's Bank of China since August 20, 2019. Article 26 The loan amount stated in the credit documents such as IOUs, receipts, IOUs, etc. is generally recognized as the principal. If interest is deducted from the principal in advance, the people's court shall determine the actual loan amount as the principal. Article 27 After the borrower and the lender have settled the principal and interest of the previous loan, they will include the interest into the principal of the later loan and re-issue a credit certificate. If the interest rate in the previous period does not exceed four times the one-year loan market quotation rate when the contract is established, the re-issued credit certificate The stated amount can be recognized as the later loan principal. The excess interest shall not be regarded as the later loan principal. Calculated according to the preceding paragraph, the sum of principal and interest payable by the borrower after the expiration of the loan period exceeds the entire loan calculated based on the initial loan principal and four times the one-year loan market quote rate when the contract is established. If the sum of interest during the loan period is exceeded, the People's Court will not support it. Article 28 If the borrower and the lender have an agreement on the overdue interest rate, the agreement shall prevail, but it shall not exceed four times the one-year loan market quoted interest rate when the contract is established. If the overdue interest rate is not agreed upon or the agreement is unclear, the people's court may distinguish between different situations: (1) Neither the interest rate within the loan period nor the overdue interest rate is agreed upon, and the lender claims that the borrower shall refer to the current one-year interest rate from the date of overdue repayment. If the interest calculated based on the market quoted interest rate standard for term loans bears the liability for overdue repayment, the people's court shall support it; (2) The interest rate within the loan period is agreed but the overdue interest rate is not agreed upon, and the lender claims that the borrower shall start from the date of overdue repayment. If the interest during the period of capital occupation is paid according to the interest rate during the loan period, the People's Court shall support it. Article 29 The lender and the borrower have agreed on both the overdue interest rate and liquidated damages or other charges. The lender may choose to claim overdue interest, liquidated damages or other charges, or they may all claim them together, but the total amount exceeds the amount upon which the contract is established. The People's Court will not support the portion of the one-year loan that is four times the market quoted interest rate.
Article 30 The borrower may repay the loan in advance, unless otherwise agreed by the parties. If the borrower repays the loan in advance and claims that the interest shall be calculated based on the actual loan period, the people's court shall support it. Article 31 After the implementation of these Provisions, these Provisions shall apply to first-instance private lending dispute cases newly accepted by the People's Court. For newly accepted first-instance private lending cases after August 20, 2020, if the loan contract was established before August 20, 2020, and the parties request to apply the then judicial interpretation to calculate the interest from the establishment of the contract to August 19, 2020, The People's Court should support it; for the interest portion from August 20, 2020 to the date of loan repayment, the interest rate protection standards of this provision at the time of prosecution shall be applied. Can I not repay an online loan platform with high interest rates?
If the interest rate of an online loan is too high, I can not repay it. It is not illegal if the online loan interest does not exceed four times the one-year loan market quotation rate when the contract is established. The borrower shall not return the excess interest. Usury is prohibited. The loan interest rate shall not violate relevant national regulations. If the loan contract does not stipulate the payment of interest, it shall be deemed to be If the loan contract is interest-free, the agreement on payment of interest is not clear in the loan contract, and the parties cannot reach a supplementary agreement, the interest will be determined according to local or party transaction methods, transaction habits, market interest rates and other factors.
It is recommended that you go to Yingxin Kuaicha to obtain a personal credit big data report to clearly understand your credit status.
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Extended information:
Can I get a loan if my credit card is overdue?
If it is only once or twice, you don’t need to worry too much. , the bank will still consider your repayment ability to decide whether to grant you a mortgage loan. In addition, if you can provide proof of non-malicious intent, the chance of applying for a mortgage loan will be greatly increased. Generally speaking, bank mortgage loan requirements for credit records are as follows:
1. 3 consecutive or 6 cumulative credit cards within two years. Generally speaking, banks will refer to an individual’s credit history in the past 2 years when approving a mortgage. Generally speaking, if one spouse makes three consecutive repayments within two years, or a total of six repayments, they will not be able to obtain a loan. The meaning of three consecutive repayments is that, for example, the repayment period of a fund is one month and it has not been repaid for three consecutive months; and the cumulative six times means that it was repaid once, and then happened again, and this happened six times.
2. There are also some banks. If the amount is not large (generally less than 500 yuan), you can apply for a non-malicious certificate and increase the down payment. Or the bank requires you to save tens of thousands of yuan and get a time deposit with the bank. After you have provided proof of deposit certificate, you can apply for a mortgage.
3. Banks that only have one or two credit cards will generally not reject the loan, but may increase the loan interest rate appropriately. If the loan interest is higher than the legal interest, can I not have to pay it back?
No need to pay it back.
You don’t have to pay back the amount that exceeds the legal provisions, but the court does not support it. If the annual interest rate exceeds 36% (3 points), it is invalid. The interest rate agreed between the borrower and the lender does not exceed the annual interest rate of 24%. If the lender requests the borrower to pay interest according to the agreed interest rate, the people's court shall support it. If you borrow a loan at a high interest rate, you cannot refuse to repay it. The debtor does not need to repay the portion that is considered a loan sharking rate, but the principal and reasonable interest must be repaid.
According to the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases"
Article 26: The interest rate agreed between the borrower and the lender does not exceed the annual interest rate of 24%. If a person requests the borrower to pay interest according to the agreed interest rate, the people's court shall support it.
If the interest rate agreed between the borrower and the lender exceeds the annual interest rate by 36%, the excess interest agreement is invalid. If the borrower requests the lender to return the interest that has been paid in excess of 36% of the annual interest rate, the People's Court shall support the request.
Article 28: After the borrower and the lender have settled the principal and interest of the earlier loan, the interest will be included in the principal of the later loan and a re-issued voucher will be issued. If the interest rate in the previous period does not exceed the annual interest rate of 24%, the re-issued voucher will be The stated amount can be recognized as the later-term loan principal; the excess interest cannot be included in the later-term loan principal. If the agreed interest rate exceeds the annual interest rate by 24%, and the party claims that the excess interest cannot be included in the later loan principal, the People's Court shall support it.
Based on the calculation of the preceding paragraph, the sum of principal and interest that the borrower should pay after the expiration of the loan period cannot exceed the initial loan principal and the entire loan calculated with an annual interest rate of 24% based on the initial loan principal. The sum of interest during the period.
If the lender requests the borrower to pay the excess amount, the people's court will not support it.
Although there is no need to repay the excess interest, the principal and the excess will be calculated according to the highest general standard. In this way, it will not be cost-effective for you to repay, so it is recommended not to borrow usurious loans unless there is an emergency.