The law protects the interest rate of private lending within a certain range, and it is not protected if it is too high. If the loan contract between natural persons stipulates to pay interest, the loan interest shall not violate the relevant provisions of the state on limiting the loan interest rate. The interest rate of private lending can be appropriately higher than the bank interest rate, and the local people's courts can specifically grasp it according to the actual situation in the region, but the highest interest rate shall not exceed four times the interest rate of similar loans of banks (including this interest rate).

legal ground

Article 26 of the Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

If the lender requests 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 exceeds four times the quoted interest rate of the one-year loan market at the time of the establishment of the contract.

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.