Private loans have always been a controversial loan method, and there are endless cases of disputes about private loans. my country's Supreme People's Court stipulates that private loan interest rates must not be higher than four times the bank interest rates for the same period. So are private loans protected by law? Let’s find out together.

Are private loans protected by law?

Usually, private loan interest rates are protected by law within the prescribed range, but there are three types of behavior that are not protected by law.

1. If interest is deducted in advance, for example, if you borrow 100,000 yuan and deduct 10,000 yuan in interest in advance, the borrower actually only gets 90,000 yuan, then the principal will be paid at 90,000 yuan when the loan is repaid.

2. The borrowing method and purpose are illegal.

3. Disguised loan sharking, according to the interpretation of the Supreme Law, whether it is interest, consulting fees, intermediary fees, etc., the total amount will only be protected by the law if the total amount is within 24%.

The above is an introduction to whether private loans are protected by law. When applying for private loans, you must carefully read the contents of the contract.