Usury refers to the lending behavior in which the agreed interest rate is higher than the general interest rate. It is legal in itself, but the agreed interest rate shall not exceed four times the one-year loan market quoted interest rate when the contract is established. The excess shall not protected by law. As long as the interest rate for borrowing exceeds or exceeds the interest rate prescribed by the state in disguise, it constitutes usury. Current laws stipulate that if the interest rate agreed upon by both parties does not exceed four times the one-year loan market quote rate at the time the contract is established, it is protected by law. The debtor does not have to repay the usury portion, and the creditor's request for repayment is not protected by law, but the principal and reasonable interest must be repaid.

Legal Basis

Article 25 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases", the lender requires the borrower to pay interest according to the interest rate agreed in the contract , the people's court should support it, except where the interest rate agreed upon by both parties exceeds four times the one-year loan market quoted interest rate at the time the contract is established. The "one-year loan market quoted interest rate" referred to in the preceding paragraph refers to the one-year loan market quoted interest rate published monthly by the National Interbank Funding Center authorized by the People's Bank of China since August 20, 2019.