The annual interest rate is below 24%.
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases stipulates that:
1 The part whose annual interest rate is less than 24% is the legal right of investors supported by law, that is, the judicial protection zone;
2. The part with annual interest exceeding 36% can be returned according to law even if the borrower has paid the interest. This area is invalid.
According to the regulations, 24%~36% of disputes are settled by both borrowers and borrowers through negotiation, respecting the established facts. This area is a natural debt zone. In response to a reporter's question, Du Wanhua, a full-time member of the Supreme People's Judicial Committee, explained that if the parties ask the people to protect their interests according to the contract, the people will not be protected by law.
Extended data:
Background:
According to the Supreme Law, with the advancement of China's interest rate marketization reform, it is imperative to reform the judicial policy with the benchmark loan interest rate as the upper limit. Du Wanhua further explained that the central bank announced on 20 13 that it would no longer announce the benchmark interest rate of loans for the same period. Once it is not published, a large number of cases will not be tried, so they have to be revised.
If this interest rate is stipulated in the contract, the borrower will repay the interest according to the contract, and this repayment is effective. Moreover, if the borrower repents after repayment and wants to get back more than 24% interest, this lawsuit request will also be rejected.