4 cents interest is usury. If the interest exceeds four times the quoted interest rate of the one-year loan market when the loan contract is established, it is usury. The borrower may not repay the interest other than usury; But the interest within a reasonable range still needs to be paid back.

legal ground

Article 680 of the Civil Code

It is forbidden to lend at high interest, and the interest rate of borrowing 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 method of interest payment, 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 having no interest.

Article 25 of 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 lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds four times the quoted interest rate of the one-year loan market at the time of the establishment of the contract.

The "one-year loan market quotation rate" mentioned in the preceding paragraph refers to the one-year loan market quotation rate issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20, 20 19.