If there is a contract, the amount of liquidated damages shall be determined according to the contract, and generally the amount agreed in the contract shall prevail. Therefore, when you borrow money, you must have signed a loan contract, and there should be an agreement on the amount of liquidated damages under the liability clause in the contract. You can pay liquidated damages to the other party according to the amount agreed in the loan contract at that time and bear the liability for breach of contract.

The relevant legal basis is as follows:

Clause 1 14 of the Contract Law stipulates that the parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the situation of breach of contract, or may agree on the calculation method of the compensation amount for losses caused by breach of contract.

2. About the upper limit of liquidated damages.

The law stipulates that the liquidated damages shall not exceed 30% of the contract amount. If the liquidated damages agreed in your loan contract do not exceed 30% of the loan amount, that is, 1.5 million, then you should pay as promised when you breach the contract. If the liquidated damages exceed 1.5 million, then you don't need to pay the excess, because it has exceeded the legal limit, and the excess is illegal and invalid.

The relevant legal basis is as follows:

According to the provisions of Article 29 of Interpretation II of Contract Law, if the liquidated damages agreed by the parties exceed 30% of the losses caused, they may request the people's court or arbitration institution to reduce them appropriately in accordance with the provisions of Article 114 of Contract Law.

Extended data

The simple and popular understanding of loan is to borrow money with interest.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

References:

Baidu encyclopedia-loan