Legal analysis: it is illegal. The Supreme Law issued a new regulation, which takes the quoted interest rate (LPR) of one-year loan market released by the National Interbank Funding Center on the 20th of each month as the standard, and clearly determines the upper limit of judicial protection of private lending interest rate, replacing the original provision of "two lines and three districts take 24% and 36% as the benchmark" in the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases. If the quoted interest rate of one-year loan market released on July 20, 2020 is 4 times of 3.85%, the upper limit of judicial protection of private lending interest rate is 15.4%, which is significantly lower than the previous 24% and 36%.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.

Article 30 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. The lender can choose to claim overdue interest, liquidated damages or other expenses, or both, but the people's court will not support the part that exceeds 4 times the quoted interest rate of the one-year loan market when the contract is established.

Thirty-second after the implementation of these provisions, the people's court of first instance shall accept the new cases of private lending disputes, and these provisions shall apply.