Interest below 36% is not illegal.

The Provisions of the Supreme People on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases was adopted by the Supreme People's Judicial Committee at its1655th meeting on June 23rd, 20 15, and is hereby promulgated and shall come into force as of September 23rd, 20 15.

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 requests the borrower to pay interest at the agreed interest rate, the people shall support it.

The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. If the borrower requests the lender to return the interest paid in excess of 36% per annum, the people shall support it.

Article 27. 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 actual amount lent shall be the principal.

Extended data

P2P loan model

B2c mode

B of b2c generally refers to banks, and some websites also provide products of loan companies. Generally, online b2c loans rely on online loans to work first and then lend. According to different rules, some applicants need to go offline. At present, the b2c model is restricted by the region, because its business entities are all institutions with geographical restrictions, and its coverage needs to be expanded.

C2c(p2p) mode

P2P is short for PeertoPeer, which means person to person. In this mode, the applicant can decide the interest rate, term and other conditions independently according to his credit status and repayment ability, and Party B can freely choose the object he wants to borrow like online shopping.

danger

1, the virtual nature of online transactions makes it impossible to authenticate the credit status of both borrowers and borrowers, which is prone to fraud and non-payment of debts.

2. A lot of lender information published on the Internet platform is in the name of "loan company" and "financing company". In fact, financial institutions must be approved by the state to engage in financial services such as credit financing. Those who engage in financial activities without authorization are often punished for "illegal fund-raising", "illegal absorption of public deposits" and disturbing the order of financial management.

3. If loans are issued on behalf of the network platform, if the network platform neglects self-discipline, or the internal control procedures fail, or are used by others, there may be cases of fabricating loan information and illegally raising funds.