National laws stipulate that the loan interest shall not exceed 24% per annum.
Since the implementation of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases on September 20 15, the standard of usury is no longer based on whether the annual interest rate exceeds 24%, but on whether it exceeds 36%, that is, the annual interest rate exceeds 36%.
According to the provisions in the Notice of the People's Bank of China on Banning Underground Banks and Combating usury, the interest rate of private personal loans shall be determined by both borrowers and borrowers through consultation, but the interest rate determined through consultation between the two parties shall not exceed 4 times (excluding floating) the loan interest rate of financial institutions of the same grade at the same period announced by the People's Bank of China. Those who exceed the above standards should be defined as high-interest loans.
Article 26 of the Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases stipulates that if the interest rate agreed by both lenders and borrowers does not exceed 24% per annum, the people's court shall support it.
The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum.
As can be seen from the above, since the Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases came into effect on September 1 2065, the standard of usury is no longer based on whether the annual interest rate exceeds 24%, but on whether it exceeds 36%, that is to say, it does not belong to usury.
The interest of private lending is agreed by both parties, but it is more than four times the interest rate of bank loans in the same period and is not protected by law. That is to say, if the borrower fails to pay back the money, the creditor will sue the court, and if the court decides, it will only award interest at four times the bank loan interest rate in the same period, and the excess will not be awarded.
Second, the role of loan interest in the market.
As the use price of funds, interest plays a very important role in the operation of market economy, mainly in the following aspects:
1, the function that affects enterprise behavior
As the occupation cost of an enterprise, interest directly affects the economic benefits of the enterprise. In order to reduce costs and improve efficiency, enterprises should do everything possible to reduce the amount of funds, and at the same time compare the costs of various financing methods in the process of financing. If the enterprises in the whole society regard saving interest expenses as a common behavior mode, then the efficiency of economic growth will certainly be improved.
2. Functions that affect residents' asset selection behavior.
With the increasing real income level and savings rate of Chinese residents, asset selection behavior has emerged. The increase of financial instruments provides an objective basis for residents' asset selection behavior, and interest income is the main incentive for residents' asset selection behavior. Residents' departments attach importance to interest income and spontaneously produce asset selection behavior, which has an impact on macro-control and micro-foundation reconstruction. Judging from China's current situation, the high savings rate has become a major feature of China's economy, providing a solid financial foundation for the rapid economic growth. The various asset selection behaviors made by residents under the incentive of interest income have contributed to the realization of various macro-controls.
3, the function of influencing government behavior
Since interest income is closely related to the economic interests of deficit and surplus departments in the whole society, the government can also use it as an important economic lever to regulate economic operation. For example, if the central bank takes measures to lower interest rates, more money will flow to the capital market, and when interest rates increase, funds will flow out of the capital market. If the government raises funds by credit, it can issue treasury bonds at an interest rate higher than the bank's deposit interest rate for the same period, and absorb private monetary funds into the hands of the government for various financial expenditures.
Third, the influencing factors of loan interest
The amount of interest depends on three factors: principal, deposit period and interest rate level.
The calculation formula of interest is: interest = principal x interest rate x deposit term.
According to People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Guoshuihan [2008] No.826, since June 9, 2008, personal income tax on savings deposit interest is temporarily exempted, so the interest tax on savings deposit interest is temporarily exempted at present.
The above is the relevant content of "the law stipulates that the loan interest cannot exceed how much". From the above, we can know that the lender may not include interest in the principal to seek high profits. If it is found during the trial that the creditor included the interest in the principal to calculate compound interest, if the interest rate exceeds the limit stipulated in Article 6, the excess interest will not be protected.