The judicial interpretation of private lending is the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, which stipulates that the loan interest and overdue interest shall not exceed four times the listed interest rate of one-year loan market when the contract is established. With regard to the provisions on the intersection of civil cases and criminal cases in private lending disputes, such cases are often intertwined with cases of illegally absorbing public deposits, fund-raising fraud, illegal business operations, and there are criminal cases and civil cases caused by the intersection of the same legal fact or two legal facts, that is, civil cases and criminal cases are intertwined to some extent.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

Article 12

If the borrower's or lender's lending behavior is suspected of committing a crime, or the effective judgment determines that it constitutes a crime, and the parties file a civil lawsuit, the private lending contract is certainly not invalid. The people's court shall, in accordance with the provisions of Articles 144, 146, 153 and 154 of the General Principles of the Civil Law and Article 13 of these Provisions, determine the validity of private loan contracts.

If the guarantor claims not to bear civil liability on the grounds that the borrower's or lender's lending behavior is suspected of committing a crime or that the effective judgment determines that it constitutes a crime, the people's court shall determine the civil liability of the guarantor according to the effectiveness of the private lending contract and the guarantee contract and the degree of fault of the parties. Article 14

The plaintiff brings a private lending lawsuit based on the creditor's rights certificates such as IOUs, receipts and IOUs, and the defendant raises a defense or counterclaim based on the basic legal relationship, and provides evidence to prove that the creditor's rights dispute is not caused by private lending. The people's court shall try the case according to the basic legal relationship on the basis of finding out the facts of the case.

The provisions of the preceding paragraph shall not apply to the creditor-debtor agreement reached by the parties through mediation, reconciliation or liquidation.