Taikang county lawyer
Jiaocheng district lawyer
Jinjiang district lawyer
Lawyer xinmi city.
Wuhou district lawyer
Baiyun district lawyer
In modern people's life, borrowing between individuals is very common, and borrowing generally involves the issue of interest. Many people don't know much about this issue, especially how much is agreed. So how much interest is appropriate for private loans? Now, let Bian Xiao give you a detailed answer below.
First, how much interest is appropriate for private loans?
According to the law of our country, the interest of private lending is generally embodied in the principle of autonomy of will, that is, the interest is agreed by both parties through voluntary consultation. As long as it is within the scope prescribed by law, the law is allowed and protected. If there is no agreement or unclear agreement on interest between the two parties, it shall be deemed that interest is not paid. In addition, national laws restrict high interest rates, and the maximum interest rate for private lending shall not exceed four times the bank interest rate.
In judicial practice, due to the imperfect legal provisions, the parties' legal awareness is weak, and there are many disputes over private lending and interest, with various forms of expression. For example:
(1) Both parties only verbally agree on the loan and interest. When the borrower does not consciously pay off when due, the lender generally does not have enough evidence to prove the fact of borrowing and interest, and it is difficult to get court support after litigation.
(2) If the loan is agreed in writing, but the interest is not agreed, under normal circumstances, the judge decides not to pay interest. Even if there is evidence to convince the judge that it is an interest agreement, it is difficult to prove the level of the interest agreement.
(3) The interest agreed by both parties exceeds that agreed by the bank for similar loans in the same period. In this case, the court did not support the interest charged at 4 times the bank interest rate, but affirmed the interest within 4 times and the effectiveness of the private lending agreement itself.
Second, how much interest can a personal loan agree on?
Whether private lending can agree on interest First of all, private lending can be paid (interest-bearing loans) or free (interest-free loans), and whether it is paid (interest-bearing loans) is agreed by both borrowers and lenders. Therefore, private lending can stipulate interest.
Secondly, according to the first paragraph of Article 211 of the Contract Law, "If there is no agreement or unclear agreement on interest payment in the loan contract between natural persons, it shall be regarded as not paying interest". Only when both parties agree in advance in writing or orally that private lending is interest-bearing lending, the lender can ask the borrower to pay interest when repaying the principal; Otherwise, it is regarded as an interest-free loan, and the lender may not require the borrower to pay interest.
Furthermore, according to the second paragraph of Article 211 of the Contract Law, "If interest is paid in the loan contract between natural persons, the loan interest rate shall not violate the provisions of the state on restricting the loan interest rate" and "Several Opinions", the interest rate of private lending may be appropriately higher than the bank's interest rate, but the maximum interest rate shall not exceed four times that of similar bank loans ",and private lending shall not exceed four times the benchmark interest rate of central bank loans (including the principal interest rate), and the excess part shall not be protected by law.
In fact, in order to regulate the lending behavior between private individuals, China's laws have clear provisions on loan interest and other matters, and as borrowers and lenders, it is best to agree on interest according to these provisions. As for how much interest is appropriate for private lending, we should analyze and deal with it according to the actual situation.