First, the issue of loan interest rate.
According to the regulations, if the interest rate agreed by the borrower and the borrower does not exceed 24% of the annual interest rate, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it. According to Chinese law, the interest rate of private lending can be appropriately higher than that of banks, but the maximum interest rate should not exceed four times that of similar loans of banks. Although the law stipulates that the maximum loan interest rate should not exceed four times that of similar bank loans, and the interest should not be included in the principal to calculate compound interest, in practice, the interest paid by private loans is often higher than this limit of four times, especially in the case of loan difficulties. Lenders should be reminded here that even if the borrower agrees, the law does not protect the interests that violate the law. If the circumstances are serious, it may turn into a criminal offence.
Second, it is recommended to negotiate with the lender.
In fact, after several years of repayment, it is obvious that the loan interest rate is very high, which has far exceeded its own principal. In this case, we can negotiate with the lender to determine the loan interest rate. If the other party agrees not to repay the loan after negotiation, then we can stop repayment, but if the other party is unwilling, then we can bring a lawsuit to determine whether the loan agreement is legal and reasonable.
Third, pay attention to whether it is related to credit reporting. If the loan can be found in the credit information, it is recommended not to stop the repayment privately, otherwise it will be difficult to eliminate the default record once it appears, and even it will take several years. However, if there is no way to find it in the credit report, then you can negotiate and deal with it before repaying. This is actually a relatively large degree of debugging.