According to the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" adopted by the the Supreme People's Court Judicial Committee at its meeting1655th on June 23rd, 20th/May:
Article 26 If the interest rate agreed by the borrower and the lender does not exceed 24% of the annual interest rate, and the lender requests the borrower to pay interest at the agreed interest rate, 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.
It can be considered that an annual interest rate of more than 36% is usury.
Expanding the regulation of data interest rate is the core issue of private lending, and it is also one of the important contents of this judicial interpretation. The contents of the Provisions on Interest Rate and Interest of Private Lending mainly include:
1. If there is no agreement on interest between the borrower and the lender, or the agreement on interest between natural persons is unclear, the lender has no right to ask the borrower to pay interest during the loan period;
2. If the interest rate agreed by the borrower and the borrower does not exceed the annual interest rate of 24%, the lender has the right to require the borrower to pay interest at the agreed interest rate. However, if the interest rate agreed by the borrower and the borrower exceeds 36% per annum, the interest exceeding 36% shall be deemed invalid, and the borrower has the right to demand the lender to return the interest paid exceeding 36% per annum.
3. If interest is deducted from the principal in advance, the people's court shall confirm it as the principal according to the actual loan amount;
4. Unless otherwise agreed by the borrower and the borrower, the borrower may repay the loan in advance and calculate the interest according to the actual loan term.
According to the judicial interpretation of 199 1, the interest rate of private lending is more than four times the benchmark interest rate of bank loans and is not protected by law.
In other words, you have to bring a lawsuit to the people's court, demanding the use of state coercive power to protect the interest you have earned. If it exceeds 4 times, it will not be protected. However, if the parties are willing to perform automatically, the court will recognize it. If the parties want to repent and come back after performance, the court will not support it.
Du Wanhua said, summing up the economic development in these years, it is found that the profits created by the real economy are definitely not that high. If usury is not controlled, it will be unfavorable to the real economy, especially to the development of small and medium-sized enterprises. Therefore, the judicial interpretation stipulates that interest with an annual interest rate exceeding 36% is invalid.
It means that if the parties voluntarily repay the interest with an annual interest rate of more than 36%, it can be returned, which is a major revision of the judicial interpretation of 199 1. The court does not protect the 24%-36% part, but the parties are willing to perform it automatically and the court does not object.
Provisions of the Supreme People's Court-the Supreme People's Court, People's Republic of China (PRC) on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases
People's Daily Online-The upper limit of judicial interpretation of the Supreme Law is invalid if the annual interest rate of private "usury" exceeds 36%