Private lending is divided into private individual lending activities and lending between citizens and financial enterprises.
Private individual lending activities must strictly abide by the relevant provisions of national laws and administrative regulations, and follow the principles of voluntary mutual assistance, honesty and credit. Lenders' funds must be their own funds belonging to their legitimate income, and it is forbidden to absorb other people's funds and lend them by themselves.
The interest rate of private individual lending shall be determined by both parties through consultation, but the interest rate determined through consultation shall not exceed the national regulations. Loans between citizens and enterprises can be regarded as valid as long as the meaning of both parties is true.
legal ground
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, where the lender requires 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 at the time of the establishment of the contract exceeds 4 times the market quotation of one-year loan.
The "one-year loan market quotation" mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20th, 20th, 20th19th.