The Supreme People's Court's "Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" stipulates in Article 26:
The people's court shall support the lender's request to the borrower to pay interest at the agreed interest rate if the interest rate agreed by the borrower and the borrower does not exceed the annual interest rate of 24%.
The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the interest paid in excess of 36% of the annual interest rate.
According to Article 211 of the Contract Law: "If the loan contract between natural persons stipulates to pay interest, the loan interest rate shall not violate the provisions of the state on limiting the loan interest rate."
According to the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, if the annual interest rate agreed by both parties does not exceed 24%, the lender has the right to request the borrower to pay interest at the agreed interest rate. However, if the interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, the interest exceeding the annual interest rate of 36% shall be deemed invalid.
"Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases" Article 26 If the interest rate agreed by both borrowers and lenders does not exceed 24% per annum, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it.
The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid.
The people's court shall support the borrower's request to the lender to return the interest paid in excess of 36% of the annual interest rate. The interest rate of short-term loans is about 6%, so the boundary of usury is above 24%. With the interest rate cut by the central bank, the current short-term loan interest rate of banks is 5.6%, so the boundary of usury will be reduced to 22.4%. Under such intuitive figures, investors should never easily believe that platforms with annualized income as high as 20% or 30% are safe platforms.
With the legal definition, it can be clear that the reasonable interest rate will never be higher than 22.4%, otherwise there will be greater risks.
P2P mainly serves the borrowing needs of small and medium-sized enterprises. The interest rate of these loans to small and medium-sized enterprises is reasonable, but also depends on the actual affordability of small and medium-sized enterprises.