The monthly interest rate of 3 points is not usury and is not protected by law. If both parties voluntarily agree that the interest rate is 3 points, it is legal and protected by law. If the monthly interest rate of private lending is 2 points (annual interest rate is 24%), it is converted into monthly interest rate, that is, the monthly interest rate is 2 points. ), when the borrower fails to pay the interest as agreed, the lender will file a lawsuit and get the support of the court, which means that the monthly interest rate is less than 2 points; If the monthly interest rate exceeds 3 points (the annual interest rate is 36%, which is converted into monthly interest, that is, the monthly interest rate is 3 points), the excess interest is not protected by law.

"Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws 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 680 of the Civil Code of People's Republic of China (PRC) prohibits high-interest lending, and the lending 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.

What are the manifestations of usury?

The specific manifestations of usury are as follows:

(1) The loan interest rate is more than four times (including the interest rate) of the loan interest rate of similar banks in the same period as stipulated in the Supreme People's Court's Opinions on the Trial of Loan Cases by People's Courts, which constitutes usury.

(2) Calculating compound interest is a common form of usury, but not all of them belong to usury. When interest is included in the principal, there are two ways to calculate compound interest:

1, when its interest rate is less than or equal to 4 times that of similar bank loans, it is not usury;

2. When its interest rate is more than four times that of similar bank loans, it will not be supported if it exceeds some laws.

(3) When the interest is deducted from the loan, the lender will reduce the loan actually obtained by the borrower and raise the interest rate in disguise. Therefore, if the interest is deducted first when borrowing, the interest should be calculated according to the actual loan amount.

(four) transfer other people's funds, high interest loans. If the lender has already charged some usury interest, the high interest charged first can offset the unpaid legal principal and interest after the court finds that the interest rate exceeds the legal standard.