Can online loan interest exceed 24% without repayment?
If the interest on online loans exceeds 24%, it can't be repaid. According to the judicial interpretation of private lending in China, usury refers to loans with an annual interest rate of more than 36%, so 24% annual interest rate is not usury.
Whether the online loan interest exceeds 24% or not depends on the definition standard of usury:
Four times that of Four.
The Supreme People's Court has raised the upper limit of judicial protection of private lending interest rate, and clearly stipulated that the annualized interest rate in peer-to-peer lending should not exceed 4 times of the floating interest rate LPR. According to the LPR quotation, the LPR of 1 year is 3.65%, and that of 5 years or more is 4.3%. The annualized interest rate of one-year online loan shall not exceed 14.6%.
Of course, if the online loan interest exceeds 24%, you can not repay it, because the part exceeding 14.6% is considered as usury, and the borrower naturally has the right to refuse to repay.
2) 24% or 36%
Seven types of local financial organizations, such as microfinance companies, financing guarantee companies and regional equity markets, which are supervised by local financial supervision departments, are not applicable to the new judicial interpretation of private lending. Therefore, some district courts still define usury according to the "second line and three districts" standard of 24% or 36%.
That is, the annualized interest rate of online loans is lower than 24%, and the court gives protection; Between 24% and 36%, the court does not intervene; More than 36%, the excess interest is considered invalid.
In the face of the situation that the interest on online loans exceeds 24%, if the borrower and the platform agree on repayment in the contract, they have to pay it back. Of course, if the interest rate exceeds 36%, the excess cannot be returned; If the excess has been paid, the borrower has the right to recover it, and the people's court shall support it.
Although some online loans charge interest within a reasonable range, they will charge extra fees in various names. In this regard, most borrowers have encountered routine loans. Such as inflated loan amount, malicious breach of contract, arbitrary determination of breach of contract, destruction of repayment evidence, etc. are all means of routine loan. In this regard, the borrower can also refuse to repay. After all, routine loans are illegal in nature, and the principal and interest of loans are not protected by law.
If the interest on online loans is within a reasonable range, the borrower will definitely pay it back, but it can't afford it yet. You can try to contact the platform customer service to negotiate and apply for an extension of the repayment period and repay the arrears in installments. As long as the borrower makes it clear that he does not have the repayment ability for the time being and does not intentionally repay the debt, the online lending platform will consider it as appropriate.