The deposit interest can exceed the principal, and the loan interest cannot exceed the principal. Under normal circumstances, the deposit interest is low, and the interest will not exceed the principal. The loan interest that exceeds the principal belongs to usury and is a typical "lamb interest". The Supreme People's Court does not support usury.

According to the provisions of the Notice of the People's Bank of China on Banning Underground Banks and Combating usury, the interest rate determined by both parties through consultation shall not exceed 4 times of the loan interest rate (excluding floating) of financial institutions of the same grade in the same period announced by the People's Bank of China. Those who exceed the above standards should be defined as high-interest loans.

According to Article 26 of the Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, if the interest rate agreed by both borrowers and lenders exceeds the annual interest rate of 36%, the interest agreement in excess shall be invalid. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum.

Deposit is called capital preservation investment, and the risk is very low, even negligible. Risk and return are in direct proportion, and the higher the risk, the higher the return. The risk of deposit is very low and the income is also very low. If you have deposited a certain amount of money in the bank for many years, there may be cases where the deposit interest exceeds the principal.

After the deposit interest exceeds the principal, investors can go to the bank for formal procedures and withdraw the principal and interest.

Is it legal for the bank loan interest to exceed the principal?

It is illegal for the interest of bank loans to exceed the principal.

If the loan interest is higher than the loan principal, it will usually exceed the upper limit of judicial protection of the loan interest rate. Users need to return the interest within the legal scope.

As for the interest that exceeds the interest rate protection, users can not repay it, because this part of interest itself is illegal.

Of course, when users apply for loans, they should also choose to apply for formal and legal loans.

The upper limit of judicial protection interest rate for private loans is four times the quoted interest rate of 3.85% in the one-year loan market, and the upper limit of judicial protection interest rate for financial loans is 24%.

Why is the bank loan interest rate low?

Because the loan interest rates of major banks are adjusted according to the benchmark interest rate of the People's Bank of China (the central bank).

The central bank's short-term, medium-term and long-term loan interest rates are 4.35%, 4.75% and 4.9% respectively, and the major banks basically rise 10%-20% on this basis. The specific increase depends on the borrower's credit information and repayment ability.

If you apply for a provident fund loan to buy a house, the loan interest rate will be lower. At this stage, the minimum interest rate for provident fund loans is 2.75%.

The loan interest rate of private financial institutions is generally high:

1. The funds of these financial institutions are basically owned by themselves, and the sources of funds are different from those of banks, which will increase the loan interest rate and prevent bad debts.

2. Most people choose loans from private financial institutions because they don't meet the requirements of bank loans, that is, many people choose when they can't find a suitable financing channel.

At this time, many financial institutions will sit up and raise the loan interest rate, but banks are different. Because the benchmark interest rate is limited and the floating space of interest rate is limited, the interest rate of bank loans is lower than that of private financial institutions.

What are the bank loan processes?

1. Apply for a loan from the bank and submit the loan information.

2. After the acceptance of the bank, let a professional appraisal company evaluate the value of the collateral and verify the loan amount according to the root appraisal value.

3. Open a personal current deposit account and sign a loan contract.

4. Go through the real estate mortgage registration formalities with the Housing Authority.

5. Bank loans, borrowers repay on time.

The process of bank loan seems simple, but it takes 30 working days to actually handle it.

If you apply for mortgage plus mortgage, it may take longer, because you have to foreclose-cancel mortgage registration-mortgage again.

Generally speaking, the interest rate of bank loans will change according to local policies and the actual situation of borrowers. There is no fixed loan interest rate, but it is always much lower than the interest rate of private financial institutions, and the repayment pressure is also reduced.

Can the interest of private lending exceed the principal?

The interest of private lending can exceed the principal. When the loan term of the lender is long enough, the interest of the loan will exceed the principal. It does not mean that the interest exceeds the principal, as long as the interest rate agreed by both borrowers and lenders does not exceed 4 times the bank's loan interest rate for the same period. However, if in private lending, the debtor includes interest in the principal to calculate compound interest, and the interest rate exceeds four times that of similar loans of banks, the excess interest is not protected by law. Article 680 of the Civil Code of People's Republic of China (PRC) prohibits high-interest lending, and the lending rate 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 payment method of interest, 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 interest-free.

Can't the interest be greater than the principal?

Specific analysis of the specific situation.

The situation that interest exceeds the principal does exist. As long as the term of your loan is long enough, the interest on your loan may exceed the principal. Interest exceeding the principal does not mean that it is illegal, because it mainly depends on the interest rate of the loan.

China clearly stipulates that the loan interest rate does not exceed the annual interest rate of 24%, which is legal interest and should be supported by the people's court.

If the loan interest rate exceeds the annual interest rate of 36%, the excess is invalid and the borrower does not need to repay it. If the borrower has paid the interest, it may also request the lender to return it, and the people's court shall also support it.

As for the part where the loan interest rate exceeds 24% but does not exceed 36%, there is no clear stipulation. If the borrower pays, the lender can also charge.

Therefore, as long as the interest rate you apply for a loan does not exceed the annual interest rate of 24%, even if the interest exceeds the principal, it is ok and legal.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 674 The borrower shall pay interest at the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and cannot be determined according to the provisions of Article 510 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan term is more than one year, it shall be paid at the end of each year; if the remaining term is less than one year, it shall be paid together with the loan.

Article 675 The borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.

Article 676 If the borrower fails to repay the loan within the agreed time limit, it shall pay the overdue interest in accordance with the agreement or the relevant provisions of the state.

Article 680 usury is prohibited and the loan interest rate 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 payment method of interest, 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 interest-free.