Legal subjectivity:

4 cents interest is considered usury. If the interest exceeds four times the one-year loan market quote rate when the loan contract is established, it is considered usury. The borrower does not need to repay the interest that exceeds the usury portion; however, the interest that is within a reasonable range must still be repaid. Legal objectivity:

Article 680 of the "People's Republic of China and Civil Code" prohibits usury lending, and the interest rate for borrowing must not violate relevant national regulations. If the loan contract does not stipulate the payment of interest, it will be deemed that there is no interest. If the loan contract does not clearly stipulate the payment of interest, and the parties cannot reach a supplementary agreement, the interest will be determined based on local or party transaction methods, transaction habits, market interest rates and other factors; if the loan is borrowed between natural persons, it will be deemed to have no interest. "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.