Legal. Some interest of private lending often refers to monthly interest. Calculated by a few percent. 1 dividend means 1% monthly interest, and 2 dividend means 2% monthly interest. From the practical point of view, the so-called income of 2 cents is based on 1 yuan, which means that every 1 yuan needs to pay interest of 2 cents, and the annualized interest rate is 2%x 12=24%.

If the loan amount is 654.38 million yuan, the annual interest rate is 10000x24%=2400 yuan according to simple interest calculation. If calculated according to compound interest, the sum of principal and interest after one year is100000x (1+2%)12 = 65438.

Need to pay attention to the following questions:

First of all, criminal crimes such as illegal fund-raising, money laundering and illegal business operations are hidden in it. Secondly, we should not protect illegal behaviors such as withholding interest in advance and "usury", and at the same time, we should not support tax avoidance in the name of private lending or evading the national policy of "restricting purchases and loans". Therefore, we should be cautious in lending, identify the traps of illegal crimes, and legally finance lending.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 1 The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and other organizations. These provisions shall not apply to financial institutions and their branches engaged in loan business established with the approval of the financial supervision department, as well as disputes arising from loans and other related financial businesses.