In private individual lending, the lender's funds must be its own monetary funds belonging to its legitimate income, and it is forbidden to absorb other people's funds and transfer them to others for lending. The interest rate of private personal loans shall be determined by both borrowers and borrowers through consultation, but the interest rate determined through consultation between the two parties shall not exceed 4 times of the loan interest rate of financial institutions of the same grade at the same period (excluding floating) announced by the People's Bank of China. Those who exceed the above standards should be defined as high-interest lending.

Legal basis: Civil Code

Article 680 It is forbidden to lend at high interest, 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 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.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

Twenty-six, thirty-third to thirty-second, as amended:

After the implementation of these Provisions, these Provisions shall apply to the first-instance cases of private lending disputes newly accepted by the people's courts.

If the lending behavior occurred before August 20, 2009+August 20, 2065438, the upper limit of the protected interest rate can be determined by referring to four times the quoted interest rate of the one-year loan market when the plaintiff sued.