1. According to relevant laws and regulations, interest with an annual interest rate lower than 24% is legal interest and protected by law.
2. The interest paid voluntarily by the borrower with an annual interest rate of more than 24% and less than 36% is also protected by law.
3. Interest with an annual interest rate of more than 36% is illegal and not protected by law.
Private lending refers to lending between citizens, between citizens and legal persons, and between citizens and other organizations. As long as the opinions of both parties are true, the mortgage generated by this loan shall be deemed as valid, but the interest rate shall not exceed the relevant interest rate stipulated by the People's Bank of China.
Article 2 1 1 of the Contract Law stipulates: "If the loan contract between natural persons stipulates to pay interest, the interest rate of private lending shall not violate the provisions of the state that limit the loan interest rate". At the same time, the Supreme People's Court, a people's court, tried the loan case according to some opinions of relevant regulations: "The interest rate of private loans may be appropriately higher than that of banks, but the maximum interest rate shall not exceed four times that of banks" and similar loans. Interpretation of the Supreme Court on the Applicable Law in the Trial of Private Lending Cases
Article 26 If the interest rate agreed between the borrower and the borrower does not exceed the annual interest rate of 24%, and the lender requires the borrower to pay interest at the agreed interest rate, the people's court shall support it. The interest rate agreed by both parties exceeds the annual interest rate of 36%, and the interest rate agreement that exceeds it is invalid. The people's court shall support the borrower's request to the lender to return the interest paid at an annual rate exceeding 36%. Article 31 A borrower shall not voluntarily pay interest or liquidated damages exceeding the agreed interest rate, nor shall it harm the interests of the state, the collective or a third party. The borrower and lender shall not be required to return on the grounds of unjust enrichment, and the people's court will not support it, but the borrower requests to return unless the annual interest rate exceeds 36%.