According to the Decision on Amending the Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases (adopted at the1809th meeting of the Judicial Committee of the Supreme People's Court on August 20, 2020, and effective as of August 20, 2020):
If the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds 4 times the market quotation of one-year loan at the time of the establishment of the contract. The' one-year loan market quotation' mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20, 20 19.
In usury activities, if high-interest lending reaches a certain amount, it constitutes the crime of illegally absorbing public deposits; For the purpose of lending, taking credit funds from financial institutions and lending them to others at a high interest rate, the illegal amount is large, which constitutes the crime of lending at a high interest rate.
For the purpose of illegal possession, illegal fund-raising by fraudulent means, with a large amount, constitutes the crime of fund-raising fraud; Usury can easily lead to criminal offences such as illegal detention, kidnapping, injury and fraud; Non-governmental intermediaries and individuals lend at high interest rate with their own funds, which belongs to non-governmental lending behavior. If there is a loan dispute, it belongs to the category of civil adjustment.
Rolling interest:
2011On August 23rd, according to a report from Chongqing Evening News on People's Daily, the Chongqing Higher People's Court issued the Guiding Opinions on Several Issues Concerning the Trial of Private Lending Disputes in accordance with relevant laws and regulations. The Guiding Opinions extensively solicited and absorbed the opinions of some grassroots people's courts, the Municipal People's Congress Law Committee, the Legislative Affairs Office of the municipal government, the Municipal Finance Office, the Chongqing Branch of the People's Bank of China, the Municipal Banking Regulatory Bureau, the Municipal Federation of Industry and Commerce, the Municipal Lawyers Association and other units and individuals, and was revised and formed after discussion by the Judicial Committee of the Municipal High Court.
On the same day, the judge of the Second People's Court of the Municipal High Court interpreted the Guiding Opinions.