Legal analysis
The cost of private borrowing is 3 cents, and the annual interest rate is 36%. Interest not exceeding 24% of the annual interest rate is protected by law and must be paid. Interest exceeding the annual interest rate of 24% is a natural debt, which can be paid or not; But what has already been paid shall not be required to be returned. Private lending is a civil legal act. Lenders and borrowers form a specific creditor-debtor relationship by signing a written loan agreement or reaching an oral agreement, thus generating corresponding rights and obligations. The relationship between creditor's rights and debts is an important part of China's civil legal relationship, which is protected by law once it is formed. Private lending is a contractual behavior between borrowers and lenders. Whether the borrower and the borrower form a loan relationship, as well as the loan amount, loan target and loan term, depends on the written or oral agreement between the borrower and the borrower. As long as the content of the agreement is legal, it is allowed and protected by law. The subject matter of private lending must be the property owned or dominated by the lender. The loan relationship formed by the property that does not belong to the lender or the lender has no control right is invalid and not protected by law.
legal ground
Article 668 of the Civil Code of People's Republic of China (PRC) 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.
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases
Article 26. 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 people's court shall confirm the actual amount lent as the principal.
Article 27 After the borrower and the borrower settle the principal and interest of the previous loan, the interest will be included in the principal of the next loan and the creditor's rights certificate will be reissued. If the previous interest rate does not exceed four times the quoted interest rate of the one-year loan market when the contract is established, the amount stated in the re-issued creditor's rights certificate can be confirmed as the future loan principal. The excess interest shall not be recognized as the future loan principal. According to the calculation in the preceding paragraph, if the sum of the principal and interest that the borrower should pay 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 according to the quoted interest rate of the one-year loan market at the time of the establishment of the contract, the people's court will not support it.