There are two main ways to calculate the interest of overdue loans: one is to charge according to the interest rate agreement within the contract period.
Legal basis:
People's Republic of China (PRC) Civil Code
Article 667 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.
Article 668 A loan contract shall be in written form, unless otherwise agreed between natural persons.
The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.
Article 669 When concluding a loan contract, the borrower shall, at the request of the lender, provide the true information about the business activities and financial status related to the loan.
What is the overdue interest stipulated by the state?
The overdue interest stipulated by the state cannot exceed 24% every year.
The lender and the borrower agreed on overdue interest rate and liquidated damages or other expenses. Lenders can choose to claim overdue interest, liquidated damages or other expenses, or both, but the people will not support the part with the total annual interest rate exceeding 24%.
Overdue interest refers to the penalty interest caused by loans overdue, specifically refers to the overdue penalty interest of the borrower who fails to repay the loan according to the contract. Overdue interest is closely related to overdue loans and the credit problems of users.
Article 207 of the Contract Law stipulates: "If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations".
About penalty interest. The default interest rate of overdue loans (loans that the borrower fails to repay on the date agreed in the contract) is changed from the current daily interest rate of 2. 1% to 30%-50% higher than the loan interest rate agreed in the loan contract; If the borrower fails to use the loan as agreed in the contract, the penalty interest rate will be changed from the current daily interest rate of five ten thousandths to 50%- 100% of the loan interest rate agreed in the loan contract.
For loans that are overdue or not used according to the purpose agreed in the contract, interest will be charged at the default interest rate from the date when they are used in loans overdue or not according to the purpose agreed in the contract until the loan principal and interest are fully paid off. For the interest that cannot be paid on time, compound interest shall be calculated at the penalty interest rate.
If the parties have an agreement in the loan contract on the loan term, interest during the loan period and overdue interest, they should respect the autonomy of the parties and follow their agreement. As long as the commercial loans overdue interest does not exceed the interest rate standard stipulated by the People's Bank of China, and the private loan meets the conditions stipulated by the Supreme People's Government and is not higher than 4 times the bank loan interest rate, it will be calculated at the agreed interest rate.
In the loan contract, the two parties only agreed on the interest during the loan period, but not on the interest on overdue loans. The lender of a commercial loan may require the borrower to pay the overdue interest at the interest rate agreed in the contract during the loan period, or may require the borrower to pay the overdue interest in accordance with the relevant provisions of the state. The choice lies with the lender.
Provisions of loans overdue Municipality on Penalty Interest
Penalty interest rule: overdue principal and interest × penalty interest rate (annual loan interest rate ÷360 days × 150%)× overdue days.
1. Make a self-service reservation for repayment by voice prompt, and calculate the penalty interest to the next repayment date;
2. If the repayment is overdue on the non-contractual repayment date agreed by the business counter, the penalty interest shall be calculated to the agreed repayment date.
If the buyers can't repay the mortgage on time, they should apply to the bank for deferred repayment. As for the extension time, the bank also stipulates that the extension period of short-term loans shall not exceed the original loan term, the extension period of medium-term loans shall not exceed half of the original loan term, and the extension period of long-term loans shall not exceed three years.
Or you can apply to the bank for refinancing, that is, after obtaining the consent of the bank, the bank will transfer your outstanding property to someone who is willing to take over your property, and the receiver will continue to repay the mortgage.
Legal provisions on penalty interest
1. What is the penalty interest provision for private lending?
The penalty interest provisions for private lending are as follows:
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases
Article 29 If the borrower and the lender have an agreement on overdue interest rate, such agreement shall prevail, but it shall not exceed four times the market interest rate of one-year loan at the time of the establishment of this Contract.
If the overdue interest rate is not agreed or clearly agreed, the people can deal with it according to different situations:
(1) If neither the interest rate during the loan period nor the overdue interest rate is agreed, and the lender claims that the borrower shall bear the liability for breach of contract for overdue repayment from the date of overdue repayment, the people shall support it;
(2) If the interest rate during the loan period is agreed, but the overdue interest rate is not agreed, and the lender advocates that the borrower should pay the interest during the period of capital occupation according to the interest rate during the loan period from the date of overdue repayment, the people should support it.
Article 30 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. Lenders can choose to claim overdue interest, liquidated damages or other expenses, or both, but the people will not support the part that exceeds the quoted interest rate of the one-year loan market at the time of the establishment of the contract.
Second, what are the interest rules for private lending?
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases
Article 25 If the borrower and the lender have not agreed on interest, and the lender claims to pay interest, the people will not support it.
The interest agreement between natural persons is not clear, and if the lender advocates paying interest, the people will not support it. Except for the loan between natural persons, if the agreement on the loan interest between the borrower and the lender is unclear, and the lender claims interest, the people shall determine the interest according to the contents of the private loan contract and the local or the parties' trading methods, trading habits, market quotation and other factors.
Article 26 If the lender requires the borrower to pay interest at the interest rate agreed in the contract, the people shall support it, except that the interest rate agreed by both parties exceeds four times the listed interest rate in the one-year loan market at the time of the establishment of the contract.
The market quotation of one-year loans mentioned in the preceding paragraph refers to the market quotation of one-year loans issued monthly by the National Interbank Funding Center authorized by the People's Bank of China.
Article 27. The loan amount specified in debt certificates such as IOUs, receipts and IOUs is generally recognized as the principal. If interest is deducted from the principal in advance, the actual amount lent shall be the principal.
Article 28 After the borrower and the borrower settle the loan principal and interest in the early stage, the interest shall be included in the loan principal in the later stage, and the debt certificate shall be reissued. If the interest rate in the early stage does not exceed four times the market quotation of the one-year loan when the contract is established, the amount specified in the reissued creditor's rights certificate can be confirmed as the loan principal in the later stage. The overcharged interest shall not be used as the loan principal in the future.
According to the calculation in the preceding paragraph, if the sum of the principal and interest payable by the borrower 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 at four times the quoted interest rate of the one-year loan market when the contract is established, the people will not support it.