Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 26 If the interest rate agreed by both borrowers and lenders does not exceed 24% per annum, the people's court shall support it. The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the interest paid in excess of 36% of the annual interest rate.
1. What is usury?
1. usury refers to the loan behavior in which the interest rate agreed in the contract between the borrower and the lender is not within the range stipulated by the state. The appearance of usury will lead relevant institutions to investigate it, because it will lead to the disintegration of families and is not conducive to the stable development of society. Previously, the annual interest rate of usury was less than 36%. Now, according to the latest news, there is a new regulation on the interest rate of private lending this year, and only loans with an LPR less than four times can be protected by relevant laws. Private lending that is not within the prescribed scope is what people often call usury.
2. The two necessary conditions of usury are: 1. The nature is private lending; 2. LPR with interest rate more than four times. The latest published data is that the LPR is 3.85%, which is four times that of 15.4%. Then the interest rate in the range of 15.4% is normal lending; What is not within the scope is usury. That is, the lending behavior with interest rate exceeding 15.4% is not entirely usury. Among them, private lending is of a nature, and if it is not private lending, it cannot be counted as usury.
Two, the annual interest rate of more than 24% (2 points per month), but not more than 36% (3 points per month):
(1) If the debtor has paid 24%-36% interest to the creditor, but asks the creditor to return it in the lawsuit, the court will not support the debtor's request, which is equivalent to the court's recognition of the actually paid interest. (2) If the debtor fails to pay 24%-36% of the interest to the creditor, and the creditor asks the debtor to pay in the lawsuit, the court will not support the creditor's request, which is equivalent to not recognizing the unpaid interest. The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the interest paid in excess of 36% of the annual interest rate. This is aimed at usury. If the annual interest exceeds 36%, it will be recognized as usury. If the interest exceeds 36%, it is invalid. Even if the borrower has paid, he can ask for a return of more than 36% interest.