No more than 36% is legal. Usury refers to the lending behavior that the agreed interest is higher than the general interest, which is legal in itself, but the agreed interest shall not exceed four times the market quotation of one-year loan when the contract is established, and the excess is not protected by law. The debtor may not repay the loan-sharking part, and the creditor's repayment request is not protected by law, but the principal and reasonable interest are to be repaid.

Legal analysis

According to relevant regulations, the self-operated loan interest rate and entrusted loan interest rate of small loan companies must be controlled within 4 times of the benchmark interest rate of loans of the same grade announced by the central bank in the same period. In other words, the maximum interest rate of small loans shall not exceed 4 times of the bank loan interest rate in the same period, and both parties can negotiate within 4 times of the bank loan interest rate in the same period. If the current annual interest rate of one-year bank loans is 5.85%, the annual interest rate of one-year private lending shall not exceed 23.4%. It can be concluded that the loan interest rate within 4 times of the bank's loan interest rate in the same period belongs to the legal interest rate, and the loan interest rate above 4 times belongs to usury, and the usury part is not protected by law. 2. What is the general interest rate for small loans of loan companies? It is understood that many small loan companies have small loan products at present. Because the loan amount is not high, the general interest rate is calculated by monthly interest rate or monthly management interest rate. For most small loan companies, the monthly interest rate or monthly management fee of such unsecured small loans is generally between 1.7%-2.5%. If the interest rate of small loans is too low, we should carefully consider the formality of lending institutions. The interest rate of small loans is usually not very low, mainly short-term loans, and no collateral is required. In order to control risks, lending institutions generally set higher interest rates. Everyone needs to understand this and beware of fraudulent lending institutions. It should be noted that if you want to find a formal small loan company to apply for a small loan, I suggest you apply through formal channels. There are also many formal online loan application platforms on the Internet. You might as well pay attention to the difference and remember not to pay any fees before the loan. Formal lending institutions usually do not require borrowers to pay before lending.

legal ground

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 25 If the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds four times the market quotation of one-year loan at the time of the establishment of the contract. The "one-year loan market quotation" mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20th, 20th, 20th19th.

Is there no upper and lower limit for the financial interest rate of small loans?

The Supreme Court recently replied to the Guangdong Higher People's Court on the issue of "the scope of application of the new judicial interpretation of private lending", saying that seven types of local financial organizations, such as microfinance companies, financing guarantee companies, regional equity markets, pawn shops, financial leasing companies, commercial factoring companies and local asset management companies, which are supervised by local financial supervision departments, belong to financial institutions approved by financial supervision departments, and disputes arising from their related financial businesses are not applicable to the new judicial interpretation of private lending. The revised judicial interpretation clarified other issues. This reply will take effect on 202 1+0+0+0.

After the release of the new regulations on private lending rates, it caused great controversy among small loan companies. According to the new regulations, the maximum loan interest rate is four times the LPR interest rate. According to the current 1 year LPR interest rate, the highest interest rate is only 15.4%. At present, the interest rates of small loan companies generally exceed this red line. Therefore, some small loan companies hold a wait-and-see attitude for a period of time after the issuance of new shares and choose to shrink their business.

However, although the approval of the Supreme Law dispelled the concern that small loan companies "need to implement according to private lending rates", it did not eliminate the question of "the implementation standard of interest rate ceiling". Some insiders believe that the future will still be implemented in accordance with the "two lines and three districts" policy determined by the Supreme Law. The so-called "two lines and three districts" refers to the old standard of 24% and 36% interest rate red lines in the judicial interpretation of the Supreme Law 20 15.

"Now small loan companies and other institutions don't need to follow the new regulation of four times the LPR interest rate, which means that the previous' second line and three districts' are not applicable. Bai Chengyu said that the interest rate ceiling of small loan companies and other industries is not clearly defined. This needs to be confirmed by the financial supervision department.

That's settled! Bai Hua, let's borrow it. Our interest rate is not limited by 4 times LPR.

Many people began to expect that loans, credit cards, consumer finance, etc. would also decrease, which backfired.

The Supreme Court recently replied to the Guangdong Higher People's Court on the scope of application of the new judicial interpretation of private lending, saying that seven types of local financial institutions, such as microfinance companies, financing guarantee companies, regional equity markets, pawn shops, financial leasing companies, commercial factoring companies and local asset management companies, which are supervised by local financial supervision departments, belong to financial institutions approved by financial supervision departments, and their disputes arising from engaging in related financial business are not applicable to the new judicial interpretation of private lending. The revised judicial interpretation clarified other issues. This reply will take effect on 202 1+0+0+0.

This means that spending money, borrowing money and consumer finance do not belong to the upper limit of judicial protection of private lending interest rates. Why do we say this?

We know that if you borrow money from Ant Financial, the loan contract is not signed with Alipay, but with Chongqing Ant Financial Chengxin Small Loan and Guangfa Bank.

This means that the new judicial interpretation of private lending does not apply to your small loan in Ant Shangcheng, Chongqing, which means that it is implemented in accordance with the two lines and three districts.

Some people will say that there is also Guangfa Bank.

What I want to talk about is the financial loan contract dispute case between Ping An Bank Wenzhou Branch and the borrower Hongmou.

The judgment of the first instance refers to the newly issued judicial interpretation, and adjusts the interest, compound interest and overdue interest agreed in the financial loan contract in this case to four times the quoted interest rate (LPR) of the one-year loan market.

After the second trial, the judgment was changed on the grounds that according to the second paragraph of Article 1 of the new judicial interpretation of private lending, financial institutions and their branches engaged in loan business established with the approval of financial supervision departments are not applicable to the judicial interpretation for disputes caused by loans and other related financial businesses.

Of course, Guangfa Bank is also a serious financial institution.

Of course, there are also consumer finance companies such as Gitzo, Zhaolian and Instant on the Internet.

unfortunately

Consumer finance companies are non-bank financial institutions and are directly supervised by the CBRC. They can not only enjoy inter-bank lending, but also be included in the credit information system of the People's Bank of China, and their formality can be guaranteed through strict regulatory standards.

Then let me tidy up. Micro-loans are micro-banks, and online merchant loans are online merchant banks, both of which are financial institutions. Flowers and white stripes are small loans.

Counting, it seems that they are not limited by 4 times lpr, embarrassing!