Banks generally only support the interest part within four times of the LPR interest rate. LPR is the basic loan reference interest rate calculated and published by representative quotation banks according to the bank's loan interest rate to the best quality customers plus the open market operating interest rate (mainly the medium-term loan convenience interest rate). All financial institutions should mainly refer to LPR for loan pricing. The current LPR includes 1 year and more than 5 years. LPR has a high degree of marketization and can fully reflect the supply and demand of funds in the credit market. Using LPR for loan pricing can promote the marketization of loan interest rate and improve the transmission efficiency from market interest rate to credit interest rate.
1. According to the Decision on Amending the Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases (adopted at the the Supreme People's Court Judicial Committee's1809th meeting on August 8, 2020, which will take effect on August 20, 2020), if the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's bank of China shall. 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.
2. In usury activities, lending at a high interest rate to a certain amount constitutes the crime of illegally absorbing public deposits; For the purpose of lending, taking credit funds from financial institutions and lending them to others at a high interest rate, the illegal amount is large, which constitutes the crime of lending at a high interest rate; For the purpose of illegal possession, illegal fund-raising by fraudulent means, with a large amount, constitutes the crime of fund-raising fraud; Usury can easily lead to criminal offences such as illegal detention, kidnapping, injury and fraud; Private intermediaries and individuals with legitimate income from their own funds lend at high interest rates, which belongs to private lending behavior. If there is a loan dispute, it belongs to the category of civil adjustment. Usury interest = loan amount * interest rate * term, which is a common calculation method of loan interest. For example, for a usurer with a monthly interest of 4 points, the loan amount is 6,543.8+10,000 yuan, and the interest of 654.38+ 0 months is 654.38+000,000 * 4% * 654.38+0 = 4,000 yuan.