The maximum interest rate shall not exceed four times the market interest rate of one-year loan when the contract is established. According to relevant laws and regulations, a loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest. And both parties can agree on their own interest, but if the agreed interest rate exceeds 4 times the quoted interest rate of the one-year loan market when the contract is established, the excess is invalid.

legal ground

Article 667 of the Civil Law of People's Republic of China (PRC) is a loan contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest. Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws 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 rate of one-year loan when the contract is established. 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.