Legal analysis: it is illegal to deduct interest in advance in private lending, so the principal should be calculated by the actual money transferred out. The loan interest shall not be deducted from the principal in advance. If the interest is deducted from the principal in advance, the loan shall be repaid according to the actual amount and the interest shall be calculated. A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest. Lending often occurs in daily life, and plays an important role in financing, exchanging needed goods, production and operation, and living needs on the East Road. Loans are divided into loans from banks and other financial institutions and private loans. In the loan contract, the borrower and the lender have mutual obligations, and the lender has the obligation to provide the loan according to the agreed date and amount; The borrower is obliged to repay the loan and pay interest according to the agreed period and amount.

Legal basis: Civil Code of People's Republic of China (PRC).

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 680 usury is prohibited and the loan interest 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.