Now the online finance industry is developing rapidly, and our traditional loan industry is also on the Internet, so the online loan products are also its derivatives. If the interest rate of private lending is lower than 24%, it is a legal interest debt; 24% to 36% is natural interest debt, which is paid by the debtor voluntarily and is not prohibited by law; More than 36% are illegal interests and are not protected by law. So this is usury. If the debtor really pays back the money, he can sue for repayment.
The civil code regulates usury from a higher legal level, which not only reflects the state's attitude of resolutely prohibiting and severely cracking down on usury. It also reflects the country's determination to control the chaos in the usury market, which is conducive to maintaining the steady and healthy development of private lending and promoting economic and social prosperity and stability. Will lead to criminal cases. Because usury itself is not protected by law, in order to get more profits, when borrowers can't recover high interest or principal, lenders often use language threats, illegal detention or even use underworld organizations for extortion, which can easily lead to vicious cases such as robbery, injury and murder.
There are many problems in bank loans in China, such as too high threshold and too many procedures. Although usury can sometimes solve the urgent needs of some individuals and units, in the long run, this kind of lending behavior will not only damage the country's financial market order, but also damage the country's economic development. Loan sharks are mostly private agreements, and most of them have no credit guarantee and mortgage. The borrower's credit is only based on personal subjective judgment, which is very subjective and arbitrary, and there is no way to control the risk, so it hides great risks. If the borrower fails to repay the loan, it will be a great blow to the lender, even a lifelong blow. It is easy to affect the normal financial order.