Legal analysis: beheading is no problem from the legal level, but it requires legal procedures. If you inform the beheading interest in advance, it is not fraud, but the state does not support it. The cases accepted by the general courts are all cases in which online lending institutions demand the borrower to repay in full with a loan contract. In fact, some money has been deducted from the beginning.

Legal basis: Article 27 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases. The loan amount specified in debt certificates such as IOUs, receipts and IOUs is generally recognized as the principal. If interest is deducted from the principal in advance, the people's court shall confirm the actual amount lent as the principal.