Private lending is not illegal, and the interest rate of private individual lending is determined by both borrowers and borrowers through consultation, but the interest rate determined through consultation by both parties shall not exceed 4 times (excluding floating) the loan interest rate of financial institutions at the same period and the same level announced by the People's Bank of China. If it exceeds the above standard, it is defined as illegal usury.

legal ground

Article 680 of the Civil Code of People's Republic of China (PRC)

It is forbidden to lend at high interest rate, 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 loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.