The interest rate of private loans can be appropriately higher than the interest rate of banks. The people's courts in various places can determine the specific situation according to the actual situation of the region, but the maximum cannot exceed four times the interest rate of similar loans from banks (including the principal amount of interest rate). If this limit is exceeded, the excess interest will not be protected. When hearing loan cases, the people's courts should follow the principles of voluntariness, mutual benefit, fairness and legality, protect the legitimate rights and interests of creditors and debtors, and limit high interest rates. Based on practical trial experience, the following opinions are hereby put forward for reference when hearing such cases.
1. Loan disputes between citizens, loan disputes between citizens and legal persons, and loan disputes between citizens and other organizations should be accepted as loan cases.
2. Any disputes arising from the borrowing of foreign currencies, Taiwan dollars, treasury bills and other securities brought to court shall be handled as loan cases.
3. If the creditor applies for a payment order when the loan relationship is clear, the people's court shall review and accept the application in accordance with the relevant provisions of the Civil Procedure Law on supervision procedures.
4. When the People's Court examines the prosecution of a loan case, according to the provisions of Article 108 of the Civil Procedure Law, the plaintiff shall be required to provide a written IOU; if there is no written IOU, the necessary factual basis shall be provided. A lawsuit that does not meet the above conditions will be ruled inadmissible.
5. If the debtor's whereabouts are unknown when the creditor files a lawsuit, the court at the debtor's original domicile or the location of his property shall have jurisdiction. The court should require the creditor to provide evidence proving the existence of the loan relationship. After accepting the application, the court shall announce a summons to the debtor to respond. If the notice period expires and the debtor still does not respond, if the loan relationship is clear, a default judgment may be made after trial; if the loan relationship cannot be ascertained, the court shall make a ruling. Suspension of proceedings. If the debtor runs away during the trial and his whereabouts are unknown, and the loan relationship is clear, a default judgment may be made; if the facts are difficult to ascertain, the lawsuit shall be ordered to be suspended.
6. The interest rate of private loans can be appropriately higher than the interest rate of banks. The people's courts in various places can determine the specific situation according to the actual situation of the region, but the maximum cannot exceed four times the interest rate of similar loans from banks (including the principal amount of interest rate). . If this limit is exceeded, the excess interest will not be protected.
7. Lenders are not allowed to include interest in the principal to seek high profits. During the trial, it is found that if the creditor includes interest into the principal to calculate compound interest, and the interest rate exceeds the limit stipulated in Article 6, the excess interest will not be protected.
8. If the borrower and the lender dispute whether there is an agreed interest rate and cannot prove it, the interest can be calculated with reference to the bank's similar loan interest rate. If the borrower and the lender have a dispute over the agreed interest rate and cannot prove it, they may refer to Article 6 of this Opinion for interest calculation.
9. For regular interest-free loans between citizens, the lender requires the borrower to pay overdue interest, or if the irregular interest-free loan fails to be repaid after a reminder, and the lender requires repayment of interest after the reminder, please refer to the bank Interest rates are calculated on similar loans.
10. The loan relationship formed by one party using fraud, coercion or other means or taking advantage of others' danger to cause the other party to violate its true intention shall be deemed invalid. If the invalidity of the loan relationship is caused by the creditor's behavior, only the principal will be returned; if the invalidity of the loan relationship is caused by the debtor's behavior, in addition to the return of the principal, interest should also be paid based on the bank's similar loan interest rate.
11. If the lender knows that the borrower borrows money for illegal activities, the lending relationship will not be protected. Illegal lending activities by both parties may be dealt with in accordance with paragraph 3 of Article 134 of the General Principles of the Civil Law and the "Opinions on Several Issues Concerning the Implementation of the General Principles of the People's Republic of China and the Civil Law (Trial)" (hereinafter referred to as the "Opinions" "(Trial)) shall be sanctioned in accordance with Articles 163 and 164.
12. If there is a dispute between citizens over borrowing foreign currencies or Taiwan dollars, and the lender requires repayment in the same currency, it may be allowed. If the borrower does not have the same currency, it can repay it in RMB according to the local foreign exchange adjustment price at the time of repayment. If the lender requires repayment of interest, the interest may be calculated with reference to the Bank of China's foreign currency savings interest rate at the time of repayment.