What should you pay attention to when agreeing on interest rates for borrowing money?

Recommend Xicheng District Lawyer

Fangshan District Lawyer

Zhangqiu City Lawyer

Taojiang County Lawyer

Dai County Lawyer

Yongqiao District Lawyer

Xiangtan County Lawyer

In life, when individuals borrow money, they can generally agree on the interest rate according to the wishes of both parties. But at the same time, we must know that the right to agree on interest will also be restricted by law. Therefore, when we agree on loan interest, it is best to pay attention to relevant issues. So, what should the parties pay attention to when agreeing on the interest rate for borrowing money? Let’s find out together below.

1. What should be paid attention to when agreeing on interest rates for borrowing money?

If a loan contract between natural persons stipulates the payment of interest, the interest rate of the loan shall not violate the relevant national regulations on limiting loan interest rates." Article 90 of the "General Principles of the Civil Law": "Legitimate lending relationships are protected by law." Article 6 of the Supreme People's Court's "Several Opinions on the Trial of Lending Cases by People's Courts": "The interest rates for private lending may be appropriately higher than those of banks. The People's Court can determine the specific situation based on the actual situation in the region, but the maximum shall not exceed four times the bank's similar loan interest rate (including the interest rate). If this limit is exceeded, the excess interest will not be protected." When calculating personal loan interest, please pay attention to the following points:

(1) If both parties have agreed on the interest rate in the loan contract or IOU, When calculating interest, the interest rate is calculated based on the interest rate agreed upon by both parties. The agreed interest rate can be higher than the bank's interest rate, but the law limits the upper limit. The amount exceeding 4 times the bank's interest on similar loans during the same period is invalid. It is not allowed to include interest into the principal to obtain high interest. If the creditor is found to include interest into the principal to calculate compound interest, the interest shall not be deducted when borrowing, and the interest shall be calculated based on the actual amount of the loan.

(2) If the two parties do not agree on the interest rate or the agreement is unclear in the loan contract or IOU, according to Article 8 of the "Several Opinions of the Supreme People's Court on the Trial of Loan Cases by the People's Courts", the borrower and the lender have a dispute over whether there is an agreed interest rate, and If it cannot be proved, the interest rate can be calculated based on the bank's similar loan interest rate. In actual cases, the court has discretion as to whether to pay interest or not, and there is a legal basis for deciding whether to pay interest or not.

2. , What should you pay attention to when agreeing on loan interest?

In personal loans, both parties can clearly agree on an interest-free loan. If the repayment period is agreed upon but the borrower fails to repay it on time, or the repayment period is not agreed upon but is approved by the lender. If the borrower still fails to repay the loan after the reminder, the lender can demand repayment of the interest after the reminder. The interest calculation shall be based on the bank's interest rate for similar loans.

Be sure to make it clear, otherwise it will only be regarded as no agreement. Interest. When making a specific agreement, you cannot blindly pursue high interest. This will only turn general private lending into usury. However, our country does not protect usury. In this case, the legitimate rights and interests of the parties will be May be damaged.