Legal analysis
Usury refers to private loans that require extremely high interest rates. It is generally believed that as long as the loan interest rate exceeds or disguised as four times the bank's loan interest rate for the same period, it constitutes usury. Usury itself is not a crime, but it is not protected by law. According to the law, private lenders and borrowers can freely agree on interest, and only the agreed interest does not exceed 24% of the annual interest rate will be protected by law; The people's court shall support the borrower's request to the lender to return the interest paid in excess of 36% of the annual interest rate. The annual interest rate of more than 24% and not more than 36% belongs to the nature of debt. If the borrower has paid it, it can't claim it back, and the borrower doesn't have to pay it again. In usury activities, the crime of illegally absorbing public deposits is constituted when high-interest lending reaches a certain amount; For the purpose of lending, taking credit funds from financial institutions and lending them to others at a high interest rate, the illegal amount is large, which constitutes the crime of lending at a high interest rate; For the purpose of illegal possession, illegal fund-raising by fraudulent means, with a large amount, constitutes the crime of fund-raising fraud; Usury can easily lead to criminal offences such as illegal detention, kidnapping, injury and fraud; Private intermediaries and individuals with legitimate income from their own funds lend at high interest rates, which belongs to private lending behavior. If there is a loan dispute, it belongs to the category of civil adjustment.
legal ground
"Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases" Article 27 After the principal and interest of the previous loan are settled, both borrowers and lenders will include the interest in the latter loan principal and reissue the creditor's rights certificate. If the previous interest rate does not exceed four times the quoted interest rate of the one-year loan market when the contract is established, the amount stated in the re-issued creditor's rights certificate can be confirmed as the future loan principal. The excess interest shall not be recognized as the future loan principal. According to the calculation in the preceding paragraph, if the sum of the principal and interest that the borrower should pay after the expiration of the loan term exceeds the sum of the interest of the whole loan term based on the initial loan principal and calculated according to the quoted interest rate of the one-year loan market at the time of the establishment of the contract, the people's court will not support it.