Legal analysis: The Supreme Law issued a new regulation, which explicitly determined the upper limit of judicial protection of private lending interest rate based on the one-year loan market quoted interest rate (LPR) published by the National Interbank Funding Center on the 20th of each month, replacing the provisions of "two lines and three districts based on 24% and 36%" in the original Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases. Calculated by four times the quoted interest rate of the one-year loan market of 3.85% released on July 20, 2020, 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 Laws in the Trial of Private Lending Cases Article 30 Lenders and borrowers have agreed on overdue interest rates, liquidated damages or other expenses. The lender may choose to claim overdue interest, liquidated damages or other expenses, or both, but the people's court will not support the part that exceeds four times the quoted interest rate of the one-year loan market when the contract is established.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 32 After the implementation of these Provisions, these Provisions shall apply to the newly accepted cases of private lending disputes in the people's courts of first instance.

If the lending behavior occurred before August 20, 2009+August 20, 2065438, the upper limit of the protected interest rate can be determined by referring to four times the quoted interest rate of the one-year loan market when the plaintiff sued.