Packaging loans, that is, usury, are illegal, and usury refers to loans that demand extremely high interest. Or big ears, underground money houses, these money lenders, now called "money lenders", borrow money from "usurers" without mortgage or even written evidence. Usury credit is the oldest form of credit, and it is a kind of credit relationship with the purpose of lending money or objects to collect high interest. The interest rate is four times higher than the bank's loan interest rate for the same period, which belongs to usury. Usury, as a cruel means to deprive borrowers of private property, was particularly prevalent in the old society of China. The most common is the so-called snowballing, that is, those who fail to repay within one month turn their profits into principal, and the principal is upside down, which is the most severe form of compound interest calculation.

Article 680 of the Civil Code of People's Republic of China (PRC) prohibits high-interest lending, and the lending rate shall not violate the relevant provisions of the state. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the payment method of interest is not specified in the loan contract, and the parties cannot reach a supplementary agreement, if the interest is determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors, the loan between natural persons is regarded as interest-free.

"Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases" Article 26 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 four times the one-year loan market quotation 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 20th, 20th, 20th19th.