The loan interest rate of banks or financial institutions is limited by the highest interest rate of the People's Bank of China, which is generally consistent with the growth rate of national production.

The annual interest rate of usury is generally above 120%, which is far beyond the normal return on investment and does not conform to the stable development of social economy.

2. Different in nature

Borrowing capital: refers to the monetary capital that the owner of monetary capital lends to functional capitalists for interest. Its formation is closely related to the cyclical process of capitalist reproduction. In the cycle of capitalist reproduction, industrial capital or commercial capital often has temporarily idle monetary capital, which becomes the main source of borrowing capital.

Usury: If the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds four times the market quotation of one-year loan at the time of the establishment of the contract. The' one-year loan market quotation' mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20, 20 19.

3. Different in nature

Loan capital: It is a kind of interest-bearing capital. Loan capital is produced and developed to meet the needs of industrial capital and commercial capital under capitalist conditions, and it is an independent capital form separated from the functional capital movement. In the functional capital movement, on the one hand, a large number of temporarily idle monetary capital is formed, including depreciation expenses of fixed capital and accumulated funds for expanding reproduction;

On the other hand, there will be temporary demand for monetary funds, including purchasing raw materials or paying wages, updating equipment in advance and so on. As a result, there is a loan relationship and a loan capital is formed.

Usury: if high-interest lending reaches a certain amount, it constitutes the crime of illegally absorbing public deposits; For the purpose of lending, taking credit funds from financial institutions and lending them to others at a high interest rate, the illegal amount is large, which constitutes the crime of lending at a high interest rate; For the purpose of illegal possession, illegal fund-raising by fraudulent means, with a large amount, constitutes the crime of fund-raising fraud;

Usury can easily lead to criminal offences such as illegal detention, kidnapping, injury and fraud. Non-governmental intermediaries and individuals lend at high interest rate with their own funds, which belongs to non-governmental lending behavior. If there is a loan dispute, it belongs to the category of civil adjustment.