The lending interest rate allowed by relevant national policies is an annualized interest rate of 24. The annualized interest rate of 22 is within the range allowed by relevant national policies, so it is not considered usury, but the interest is not low, and is better than bank loans. The interest rate is about 3 times higher.

Loan sharking is a financial term that refers to loans that charge particularly high interest rates.

According to the "Decision on Amending the Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" (passed at the 1809th meeting of the Judicial Committee of the Supreme People's Court on August 18, 2020, since August 2020 Effective from the 20th):

If the lender requests the borrower to pay interest according to the interest rate agreed in the contract, the people's court shall support it, but the interest rate agreed by both parties exceeds four times the one-year loan market quoted interest rate at the time the contract is established. Except. The "one-year loan market quoted interest rate" referred to in the preceding paragraph refers to the one-year loan market quoted interest rate published monthly by the National Interbank Funding Center authorized by the People's Bank of China since August 20, 2019.

In loan sharking activities, if the usurious loan reaches a certain amount and the loan is re-loaned at a high interest rate, it constitutes the crime of illegally absorbing public deposits; for the purpose of re-lending, the credit funds of financial institutions are defrauded and loaned to others at a high interest rate, and the illegal amount is A larger amount constitutes the crime of loan sharking; for the purpose of illegal possession, the use of fraud methods to illegally raise funds, and a larger amount constitutes a crime of fund-raising fraud; loan sharking can easily lead to illegal detention, kidnapping, injury, fraud and other criminal crimes; private intermediaries The high-interest lending of self-owned funds of institutions and individuals with legitimate income is a private lending activity. If a lending dispute occurs, it falls within the scope of civil adjustment.

Usury interest = borrowing amount * interest rate * term, which is a common calculation method for loan interest. For example, for a loan shark with a monthly interest rate of 4 cents, if the loan amount is 100,000 yuan, the interest for one month will be 100,000*4*1=4,000 yuan.

When the credit growth of commercial banks slows down, the market demand for private lending will inevitably increase. As private lending enters the era of "profiteering", its negative effects are growing. Relevant parties are increasingly calling for strengthening private lending supervision.

What is worth being vigilant about is that the ensuing payment crisis and the frequent escapes of business owners have also put everyone in the private sector in danger, as if they are avoiding a "ticking time bomb" that has not yet detonated. .

It is understood that in this tiered model, if the return of the first layer is 25 of the principal, then the return of the second layer is about 18, the third layer is about 10, and the fourth layer Around 8, the lowest is usually around 3. Because of the multi-level structure, Wan Mu said that "no one knows how big the entire private lending network is."

Theoretically, the "yin and yang IOU" is enough to support all risks. If the borrower cannot perform as per the oral agreement, the creditor can use this "yang IOU" to sue and assert its rights and interests, and there is no time limit.

The early deduction of interest rates is also one of the hidden manifestations of private lending practices.