Article 124 of the Supreme People's Court's Opinions on Several Issues Concerning the Implementation of the General Principles of the Civil Law of People's Republic of China (PRC) (for Trial Implementation) stipulates that if there is a dispute between borrowers about the interest rate, the agreement is unclear and cannot be proved, the interest can be calculated with reference to the interest rate of similar loans from banks. When signing a loan contract, the two borrowers clearly agreed on the interest rate, which shall be calculated according to the agreement, but shall not violate the mandatory provisions of the law. If the loan contract is not clearly stipulated or the agreement is not clear, and neither borrower can provide evidence, the interest can be calculated according to the interest rate of similar loans from banks. Interest rate refers to the ratio of interest amount to principal of loan funds in a certain period of time. The loan interest rate can be divided into benchmark interest rate, legal interest rate, floating interest rate, preferential interest rate, differential interest rate, interest rate increase, discount loan interest rate and so on. If both parties to the loan contract have a clear agreement on the interest, it shall be calculated according to the contract, but it shall not violate the mandatory provisions on the upper and lower limits of the loan interest rate stipulated by the People's Bank of China. Article 13 of the General Principles of Loans: Determination of loan interest rate: The lender shall determine the interest rate of each loan according to the upper and lower limits of the loan interest rate stipulated by the People's Bank of China, and specify it in the loan contract. The interest rate of private lending can be appropriately higher than the interest rate of similar loans of banks in the same period, but the maximum interest rate shall not exceed 4 times (including interest rate) of similar loans of banks, and the interest rate exceeding part is not protected by law. The lender of a loan contract shall not withhold the agreed interest. Where the lender withholds the loan interest, the actual loan amount shall be used as the loan principal to calculate the interest. Article 200 of the Contract Law: The loan interest shall not be deducted from the principal in advance. If the interest is deducted from the principal in advance, the loan will be repaid according to the actual loan amount and the interest will be calculated. The loan contract shall not stipulate double counting of interest. The Supreme People's Court's Opinions on Several Issues Concerning the Implementation of the General Principles of the Civil Law of People's Republic of China (PRC) (for Trial Implementation) Article 125: Loans between citizens shall not be protected if the lender counts the interest into the principal to calculate compound interest; If the interest is deducted from the loan, the interest shall be calculated according to the actual loan amount. If the loan contract between natural persons does not stipulate or clearly stipulates the payment of interest, it shall be regarded as non-payment. Article 211 of the Contract Law: If the loan contract between natural persons does not stipulate or clearly stipulates that interest shall be paid, it shall be deemed that interest shall not be paid. Therefore, when signing a loan contract, it is best to clearly stipulate the interest rate to avoid unnecessary losses.