Legal basis: 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 lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds four times the market quotation of one-year loan at the time of the establishment of the contract. The "one-year loan market quotation" mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20th, 20th, 20th19th.
Article 28 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's court may deal with it according to different circumstances: (1) If neither the interest rate within the loan term nor the overdue interest rate is agreed, the people's court shall support the lender to claim that the borrower shall bear the liability for breach of contract for overdue repayment from the date of overdue repayment with reference to the interest rate standard listed in the one-year loan market at that time; (2) If the interest rate during the loan period is agreed, but the overdue interest rate is not agreed, the people's court shall support the lender to claim that the borrower shall pay the interest during the capital occupation according to the interest rate during the loan period from the date of overdue repayment.