1 According to the relevant laws and regulations of China, if the online loan is temporarily overdue, the borrower and the lender can negotiate to extend the loan or repay the arrears in installments. If the repayment is not made according to the extension or installment agreement, the creditor may apply for compulsory execution. Peer-to-peer loan contract is an ordinary loan contract. According to the general loan contract, it is usually explicitly required to pay a certain amount of loan interest. If the borrower is fined, it will increase the pressure on the other party. But in fact, liquidated damages can actually be agreed in online loans, but there is still a stipulation that it cannot exceed four times the quoted interest rate in the one-year loan market. This quadruple requirement is that the sum of interest and liquidated damages agreed by the parties exceeds four times the quoted interest rate in the one-year loan market. If it exceeds, it is an act of charging high interest in disguise.
2. According to the liquidated damages stipulated in the contract, if the liquidated damages stipulated in the contract are proposed by the parties or the calculation standard is too high or too low, the people's court may suggest that the parties negotiate to adjust the liquidated damages. If the two parties fail to reach a new agreement through consultation, the people's court may refer to the medium standard of liquidated damages for the same type of cases for verification, mainly depending on the court's discretion. Therefore, in the peer-to-peer loan contract, if the liquidated damages are too high, you can bring a lawsuit to the court and ask the other party to bear the litigation costs. In fact, in order to avoid disputes arising from the performance of the contract in peer-to-peer lending, it is suggested that when such liquidated damages occur, it is best to negotiate with the other party first. The liquidated damages are too high. If you go to court, the other party may have to bear the risk of losing the case. Therefore, it can generally be resolved through consultation.