It is legal that the annual interest rate of private lending cannot exceed 24%. More than 24% is not protected by law. At present, the one-year loan interest rate of China People's Bank is 5.56%. The Supreme People's Court's "Several Opinions on People's Courts Handling Lending Cases" shows that the interest rate of private lending can be appropriately higher than that of banks, and local people's courts can specifically grasp it according to the actual situation in the region, but the maximum interest rate shall not exceed 4 times (including interest rate) of similar loans of banks. If this limit is exceeded, the excess interest will not be protected. Therefore, we must be cautious in borrowing privately now, and we must clearly understand the information of the borrowing company before borrowing.

First, an overview of private lending

Private lending refers to the lending behavior between individuals and between individuals and enterprises. It has a very long history and is a form of private finance. Private lending is direct financing, while bank lending is indirect financing. Its main feature is simple procedures, but high interest, so it is commonly known as usury.

Second, how to calculate the personal interest of private loans?

As for the calculation of interest, generally speaking, according to the law, if the borrower and the lender have not agreed on the payment of interest, or the agreement is unclear, or the repayment period has not been agreed, the borrower may not pay the interest before the lender urges the repayment, or if the borrower has not been asked to pay the overdue interest despite the urging. After being urged, if the lender requires the borrower to pay overdue interest, the interest may be calculated with reference to the bank's similar loan interest rate.

Third, the way to deal with disputes over private lending.

1. The loan dispute shall be under the jurisdiction of the court of the defendant's domicile or the place where the contract is performed.

2. For bank transfer loans, if the parties can provide bank transfer vouchers, they can determine that the place where the bank is located is the place where the contract is performed. In addition, the location of the lender in the loan contract can be regarded as the place where the contract is performed.

3. The parties agree on jurisdiction in the promissory note or loan contract, and the agreed places are the defendant's domicile, the place where the contract is performed, the place where the contract is signed and the plaintiff's domicile, which does not violate the provisions of hierarchical jurisdiction. This agreement is valid and shall be implemented in determining jurisdiction. Where the place of signing is stipulated in the contract, the specific place of signing shall be indicated in the contract, otherwise the contract shall be regarded as unclear.