Calculation of two-cent interest: 2-cent interest, that is, the monthly interest rate is 2 and the annual interest rate is 24. The maximum private lending interest rate cannot exceed four times the one-year loan market quote rate when the contract is established. Therefore, as long as the 2-cent interest does not exceed four times the one-year loan market quoted interest rate when the contract is established, it is protected by law.

Legal Basis

Article 25 of the "Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases"

The lender requests the borrower to follow the interest rate agreed in the contract The People's Court shall support the payment of interest, except where the interest rate agreed upon by both parties exceeds four times the one-year loan market quoted interest rate at the time the contract is established.

The "one-year loan market quoted interest rate" referred to in the preceding paragraph refers to the one-year loan market rate published monthly by the National Interbank Funding Center authorized by the People's Bank of China since August 20, 2019 Quoted interest rate.