Legal analysis
If the repayment period is agreed in the IOU, the limitation of action will be calculated from the agreed repayment period. If there is no pause or interruption, it will be two years. If it is more than two years, you will lose the right to win the lawsuit. If the repayment period is not stipulated in the IOU, the limitation of action shall be calculated for two years from the date of arrears. If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest. If the loan contract does not specify the method of interest payment, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as having no interest. If there is no evidence that the interest is agreed orally, the court will consider it an interest-free loan and decide to repay only the principal. However, if the borrower fails to repay the loan within the time limit, it may be investigated for overdue interest rate. If the parties to the contract have not agreed on the standard of liquidated damages for overdue payment, the people's court may calculate the liquidated damages for overdue payment with reference to the standard of interest charged by the financial institution loans overdue stipulated by the People's Bank of China, and the court may partially support it.
legal ground
Article 561 of the Civil Code of People's Republic of China (PRC): In addition to performing the principal debt, the debtor shall also pay interest and related expenses for realizing the creditor's rights. If the payment is insufficient to pay off all debts, unless otherwise agreed by the parties, it shall be performed in the following order: (1) relevant expenses for realizing creditor's rights; 2 interest; (3) Principal debt.
"Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases" Article 29 Both lenders and borrowers have agreed on overdue interest rates, liquidated damages or other expenses. The lender may choose to claim overdue interest, liquidated damages or other expenses, or both, but the people's court will not support the part that exceeds four times the quoted interest rate of the one-year loan market when the contract is established.