Legal basis: judicial interpretation of private lending cases by the Supreme Court.
Article 5 After placing a case on file, if the people's court finds that private lending itself is suspected of illegal fund-raising and other crimes, it shall rule to dismiss the prosecution and transfer the clues and materials suspected of illegal fund-raising and other crimes to the public security or procuratorial organs.
If the public security and procuratorial organs refuse to file a case, or the investigation ends and the case is dismissed, or the procuratorial organs make a decision not to prosecute, or the effective judgment of the people's court determines that it does not constitute a crime such as illegal fund-raising, and the parties bring a lawsuit to the people's court on the same fact, the people's court shall accept it.
Article 26 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 market quotation of one-year loan when the contract is established.
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.