The latest regulations on private lending are as follows:

1. If there is no agreed interest, there is no right to claim interest. The interest agreement between natural persons is not clear and does not support interests;

2. The agreed interest rate shall not exceed four times the market quotation of one-year loan when the contract is established, which shall be protected by law;

3. If the agreed interest rate exceeds 4 times the quoted interest rate of the one-year loan market when the contract is established, the determination of excess interest is invalid, and the borrower has the right to require the lender to return the excess interest paid;

4. If interest is deducted from the principal in advance, it shall be recognized as the principal according to the actual loan amount;

5. Unless otherwise agreed by the borrower and the borrower, the borrower may repay the loan in advance and calculate the interest according to the actual loan term.

legal ground

Article 26 of the Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

If the lender requires the borrower to pay interest at the interest rate agreed in the contract, the people shall support it, except that the interest rate agreed by both parties exceeds four times the listed interest rate in the one-year loan market when the contract is established.

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 20th, 20th, 20th19th.

Provisions on Private Lending in the New Civil Code

The Civil Code of People's Republic of China (PRC) has been implemented since 202 1 1, and the Supreme People issued the revised Provisions of the Supreme People on Several Issues Concerning the Applicable Law in the Trial of Private Lending Cases in 2020 1. The Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases (revised in 2020) was formulated in accordance with the Civil Law of People's Republic of China (PRC), the Civil Procedure Law of People's Republic of China (PRC) and the Criminal Procedure Law of People's Republic of China (PRC), combined with trial practice. Its content is the judicial provisions of the Civil Code on private lending.

Legal basis:

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

Article 9 A loan contract between natural persons shall be deemed to be established under any of the following circumstances:

(1) Pay in cash from the date when the borrower receives the loan;

(2) If the payment is made by bank transfer or online electronic remittance, it shall be counted from the time when the funds reach the borrower's account;

(3) If the bill is delivered, it shall be from the date when the borrower obtains the bill right according to law;

(4) When the lender authorizes the borrower to control a specific fund account, the borrower obtains actual control over the account;

(5) The lender provides the loan in other ways agreed with the borrower and actually performs it.

Thirteenth in any of the following circumstances, the private loan contract shall be deemed invalid:

(a) Obtaining loans from financial institutions for lending;

(2) Lending money from other profit-making legal persons, raising funds from employees of the unit or illegally absorbing funds from public deposits;

(3) Lenders who have not obtained the loan qualification according to law provide loans to unspecified social objects for the purpose of making profits;

(four) the lender knows or should have known in advance that the borrower's loan is used for illegal and criminal activities, but still provides loans;

(5) Violating the mandatory provisions of laws and administrative regulations;

(6) Violating public order and good customs.

What are the laws and regulations for private lending?

1. Article 6 of "Opinions of the Supreme People's Court on People's Trial of Lending Cases": The interest rate of private lending can be appropriately higher than that of banks, and people in various places can grasp it according to the actual situation in the region, but the maximum shall not exceed four times that of similar loans from banks (including interest rates). Beyond this limit, the excess interest will not be protected. 2. If the loan contract between natural persons stipulates to pay interest, the loan interest rate shall not violate the relevant provisions of the state on limiting the loan interest rate. If the loan contract between natural persons does not stipulate or clearly stipulates the payment of interest, it shall be regarded as non-payment.

What are the provisions of laws and regulations on private lending?

Legal Analysis: Opinions of the Supreme People on People's Trial of Lending Cases 1. Loans between citizens, loans between citizens and legal persons, and loans between citizens and other organizations should be accepted as loan cases. 2. Lawsuits over securities such as loans, Taiwan dollars and government bonds shall be accepted as loan cases. 3. If the loan-loan relationship is clear and the creditor applies for a payment order, the people's court shall examine and accept it in accordance with the relevant provisions of the Civil Procedure Law on supervision procedures. 4. When examining a loan case, people should ask the plaintiff to provide a written loan according to Article 108 of the Civil Procedure Law; If there is no written receipt, the necessary factual basis shall be provided. Do not meet the above conditions, the ruling will not be accepted. 5. If the debtor's whereabouts are unknown, it shall be under the jurisdiction of the debtor's original domicile or the location of his property. The creditor is required to provide evidence to prove the existence of the loan relationship, and the debtor is summoned to respond after accepting it. After the expiration of the announcement period, if the debtor still fails to respond to the lawsuit and the loan relationship is clear, the judgment may be made by default after trial; If the loan-loan relationship cannot be ascertained, the lawsuit shall be suspended. During the trial, if the debtor leaves, his whereabouts are unknown and the loan relationship is clear, he may make a judgment by default; If the facts are difficult to ascertain, the proceedings shall be suspended. 6. The interest rate of private lending can be appropriately higher than the bank interest rate, which can be specified by local people according to the actual situation in the region, but the maximum interest rate shall not exceed four times (including interest rate) of similar bank loans. Beyond this limit, the excess interest will not be protected. 7. The lender shall not include the interest in the principal to seek high profits. If it is found during the trial that the creditor included the interest in the principal to calculate compound interest, if the interest rate exceeds the limit stipulated in Article 6, the excess interest will not be protected. 8. If there is a dispute between the borrower and the lender on whether there is an agreed interest rate, and it cannot be proved, the interest can be calculated with reference to the bank's similar loan interest rate. If there is a dispute between the borrower and the borrower over the agreed interest rate, which cannot be proved, the interest may be calculated with reference to Article 6 of this opinion. 9. If the lender demands the borrower to pay the overdue interest for the regular interest-free loans between citizens, or if the interest is not paid after the non-regular interest-free loans are urged, the lender may calculate the interest with reference to the interest rate of similar loans from banks. 10. The loan relationship formed by one party in violation of its true meaning by means of fraud, coercion or taking advantage of the danger of others shall be deemed invalid. If the loan relationship is invalid due to the creditor's behavior, only the principal will be returned; If the debtor's behavior causes an invalid loan relationship, in addition to returning the principal, interest should also be paid with reference to the bank's similar loan interest rate. wait for

Legal basis: Article 680 of the Civil Code of People's Republic of China (PRC) prohibits high-interest lending, and the lending rate shall not violate the relevant provisions of the state. 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 payment method of interest, 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 interest-free.

So much for the introduction of the private loan regulations.