Legal analysis: the annual interest rate of online loans does not exceed 24%, which is legal. Although China does not recognize compound interest, as long as the annual interest rate does not exceed 24%, it does not violate the relevant provisions of the law. The current law stipulates that the legal protection of private lending interest rate is divided into three levels: 1, and the annual interest rate does not exceed 24% (2 points per month), which is completely legal and all protected by law; 2. If the annual interest rate exceeds 24% (2 points per month) but does not exceed 36% (3 points per month) (1), and the debtor has paid 24%-36% interest to the creditor, but the creditor is required to return it in the lawsuit, the court will not support the debtor's request, which is equivalent to the court's recognition of the actually paid interest; (2) If the debtor fails to pay 24%-36% interest to the creditor, and the creditor requests the debtor to pay in the lawsuit, the court will not support the creditor's request, which is equivalent to not recognizing the unpaid interest; 3, more than 36% (3 points per month) of the interest is illegal, the court should be deemed invalid.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.

Article 21 Lenders and borrowers form a lending relationship through the online lending platform. The online lending platform provider only provides media services, and the people's court will not support it if the parties request it to assume the guarantee responsibility. The people's court shall support the online loan platform provider who expressly provides a guarantee for the loan through websites, advertisements and other media or has other evidence to prove that the lender requests the online loan platform provider to assume the guarantee responsibility.

Article 28 If the borrower and the lender have an agreement on overdue interest rate, such agreement shall prevail, but it shall not exceed four times the market interest rate of one-year loan at the time of the establishment of this Contract. If the overdue interest rate is not agreed or clearly agreed, the people's court may deal with it according to different circumstances: (1) If neither the interest rate within the loan term nor the overdue interest rate is agreed, the people's court shall support the lender to claim that the borrower shall bear the liability for breach of contract for overdue repayment from the date of overdue repayment with reference to the interest rate standard listed in the one-year loan market at that time; (2) If the interest rate during the loan period is agreed, but the overdue interest rate is not agreed, the people's court shall support the lender to claim that the borrower shall pay the interest during the capital occupation according to the interest rate during the loan period from the date of overdue repayment.