1. According to Article 28 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases:
If the interest rate agreed by both parties does not exceed the annual interest rate of 24%, and the lender requires the borrower to pay interest at the agreed interest rate, the people's court shall support it. The interest rate agreed by both parties exceeds the annual interest rate of 36%, and the interest agreement exceeding the part is invalid. The people's court shall support the borrower's request to the lender to return the interest paid at an annual rate exceeding 36%.
According to the legal interpretation document of the Supreme Court, if the annualized interest rate of installment loans is lower than 24%, the borrower must pay to the lending institution and be protected by law. The interest rate is 24%~36% interest-free, and both parties can negotiate on their own. If the borrower has paid this part of interest to the borrower, the court will not support the request for return; However, the borrower failed to pay interest to the borrower, and the lender asked the borrower to pay interest, which was not supported by the court.
Third, we can draw a conclusion from this, which of these installment loans are to be repaid and which are not.
Fourth, the headmaster must return it, no doubt. The annualized interest rate is less than 24%.
Fifth, the annualized interest rate of more than 36% cannot be repaid.
24%~36%, if you apply for a loan, the platform has deducted it, so it is unrealistic for you to ask the platform to refund this part of interest. However, if the platform does not deduct the principal and interest once a month, that is to say, a part of the principal plus interest is returned every month, then more than 24% of the interest cannot be repaid.
Sixth, when determining the interest, we must fully consider all kinds of expenses, because at present, many installment loans will have all kinds of expenses, generally including interest rates, handling fees, service fees and so on. Many people may only calculate the visible interest rate when judging whether it is legal, but according to the law, all expenses can be attributed to interest.
Seven. According to Article 30 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, the lender and the borrower reached an agreement on overdue interest rate, liquidated damages or other expenses. Therefore, if the annualized rate of all expenses exceeds 24%, repayment can be refused, but if the interest of 24%~36% has been paid to the loan company, it will be difficult to recover it.
Eight, the people's court stipulates that the annual interest rate of private lending shall not exceed 4 times of the bank interest rate in the same period, that is, it shall not exceed 36%, and peer-to-peer lending is a kind of private lending, so the annual interest rate of peer-to-peer lending shall not exceed 36%, and the part that exceeds 36% is illegal interest. If you have repaid the loan, some of the money exceeds the standard of 36% a year, and you have the right to recover the excess from the other party. The annual interest rate of online loans is between 24% and 36%, which is what we usually call the natural debt zone. This part of interest belongs to the interest negotiated by creditors and borrowers themselves. According to the law, if you have paid this interest, you can't get it back. If you haven't returned it, don't return it. Therefore, we will see that after many online loan disputes are brought to court, the court will only support repayment at an annual interest rate of 24% at most, but the court will not advocate returning the part that has been repaid more than 24% but less than 36%. To sum up, we can draw the conclusion that the annual interest rate of online loans is legal as long as it is lower than 36%.