Breaking the law. 1. Three-cent interest is 3% per month and 36% per year, which is more than four times the one-year loan market quoted interest rate when the loan contract was established. 2. The amount that exceeds four times the one-year loan market quoted interest rate when the loan contract is established is not protected by law and is illegal. 3. The portion that does not exceed four times the one-year loan market quoted interest rate when the loan contract is established is protected by law. "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" Article 25 If the lender requests the borrower to pay interest according to the interest rate agreed in the contract, the People's Court shall support it, but the interest rate agreed upon by both parties exceeds the limit when the contract is established. Except for loans with a one-year term that are four times the market quoted interest rate.