The loan interest rate shall not exceed the provisions of the judicial department.
Twenty-sixth the Supreme People's Court on the trial of private lending cases:
If the interest rate agreed between the borrower and the lender does not exceed the annual interest rate of 24%, the lender requests the borrower's support.
The interest rate agreed between the borrower and the borrower, and the interest agreement for the excess part is invalid. If the borrower requests the lender to repay 5% interest, the people should support it.
Two, the loan interest rate shall not exceed the upper limit prescribed by the judicial department.
There is no clear stipulation by the judicial department, but according to other legal documents, the upper limit of interest rate of private loans and commercial loans should be four times the benchmark interest rate of banks in the same period.
Third, can private lending pay more than four times the interest rate of bank loans to offset the principal?
What is the upper limit of interest rate for private lending in China?
The interest rate of private lending can be freely agreed, but it must not violate the upper limit stipulated by Chinese laws. In the past judicial practice, the interest rate of private lending could not exceed four times the interest rate of bank loans in the same period. However, the new loan regulations have been revised. According to Article 26 of the new lending regulations, the interest rate agreed by both lenders and borrowers shall not exceed the annual interest rate of 24%. If the lender requires the borrower to pay interest at the agreed interest rate, the people shall support it. The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. If the borrower requests the lender to return the interest paid in excess of 36% per annum, the people shall support it.
Accordingly, the main key figures of this regulation are 24% and 36%. How to accurately understand these two key figures? 24% and 36% are actually three interest rate ranges for private lending. The first scope is protected by judicial law, that is, private lending with an annual interest rate below 24% is protected by law; The second scope is not subject to judicial protection, that is, private lending with an annual interest rate exceeding 36%, and the part with an annual interest rate exceeding 36% will be deemed invalid and not subject to judicial protection; The third range is the natural debt range, that is, the annual interest rate is between 24% and 36%. The debts within this scope are natural debts, and the parties voluntarily perform the debts within this scope without objection. But if they file a lawsuit to protect the debts within this scope, they will not be protected.
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Fourth, the highest bank loan interest rate is legal.
No more than 15.4% is legal. The upper limit of judicial protection of loan interest rate is 15.4%, and the annual loan interest rate is protected by national laws within 15.4%, which means that the annual loan interest rate does not exceed 15.4%. Is there a maximum interest rate for private lending? It should be divided into specific situations: (1) When both parties have agreed on the interest rate in the loan contract or IOU, the interest will be calculated according to the interest rate agreed by both parties. The agreed interest rate may be higher than the bank's interest rate, but the upper limit is stipulated by law, and the part exceeding the limit is invalid. The upper limit shall not exceed four times the interest rate (including the principal interest rate) of similar loans of banks. If this limit is exceeded, the excess interest will not be protected. In addition, the lender may not include interest in the principal to obtain high profits. If interest is found to be included in the principal to calculate compound interest, it will not be protected. If the interest is deducted from the loan, the interest shall be calculated according to the actual loan amount. (2) There is no agreement or unclear agreement between the two parties in the loan contract or loan bill, which leads to uncertainty: in this respect, there are some conflicting provisions in our laws. According to the provisions of China's Civil Law, the loan contract between natural persons (that is, between individuals) is deemed not to pay interest if there is no agreement or the agreement is not clear. That is, as long as there is no interest to be paid on the IOU or loan contract, the lender cannot demand to pay interest within the repayment period. If two borrowers have a dispute over the interest rate, and the agreement is unclear and cannot be proved, the interest can be calculated according to the interest rate of similar loans from banks. Similarly, Article 8 of the Supreme People's Court's Opinions on People's Trial of Lending Cases stipulates that if there is any dispute between the borrower and the lender on whether there is an agreed interest rate and it cannot be proved, the interest can be calculated with reference to the bank's similar loan interest rate. Therefore, in practice, whether to pay interest has discretion, the judge has the final say, and there is a legal basis for judging whether to pay interest. Can the interest of private lending be higher than that of banks? The interest of private lending can be higher than that of banks. According to the Notice of the People's Bank of China on Banning and Combating Behavior, the interest rate of private personal loans is determined by both borrowers and borrowers through consultation. However, the interest rate determined by both parties through consultation shall not exceed 4 times the loan interest rate (excluding floating) of financial institutions of the same grade in the same period announced by the People's Bank of China. Those who exceed the above standards should be defined as high-interest loans. Legal basis: Article 1260 of the Civil Code of People's Republic of China (PRC). If the loan contract between natural persons does not stipulate or clearly stipulate the payment of interest, it shall be deemed as non-payment. If the loan contract between natural persons stipulates to pay interest, the loan interest rate shall not violate the relevant provisions of the state on limiting the loan interest rate.