Legal basis: the Supreme People's Court's opinions on people's courts' handling of loan cases.
Article 6 The interest rate of private lending may be appropriately higher than that of banks, which shall be specifically grasped by the local people's court according to the actual situation in the region, but the maximum interest rate shall not exceed 4 times that of similar loans of banks (including the principal interest rate). Beyond this limit, the excess interest will not be protected.
Article 10 A loan relationship formed by one party against its true meaning by means of fraud, coercion or taking advantage of others' danger shall be deemed invalid.
Article 11 The lender knows that the borrower borrows money to engage in illegal activities, and its lending relationship is not protected. Article 13 stipulates that in the loan relationship, the person who only plays the role of contact and introduction does not bear the guarantee responsibility. If there is a real intention to guarantee the performance of the debt, it shall be recognized as a guarantor and bear the guarantee responsibility.