As far as I know, the annual interest rate of private lending is between 24% and 36%
The annual interest rate of private lending is between 24% and 36%
If the annual interest rate does not exceed 24%, it is legal and effective. If the interest rate agreed by both parties 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. 2. If the annual interest rate is more than 24% but less than 36%, according to the wishes of the parties. Private lending with an annual interest rate of 24%~36% is a natural debt. If a lawsuit is to be filed, the court will not protect it. However, the parties are willing to perform automatically, and the court will not object. The borrower cannot demand the return of the interest already paid. 3. If the annual interest rate exceeds 36%, part of it will be invalid. The interest rate agreed by both parties exceeds the annual interest rate by 36%, and the interest agreement for the excess part is invalid. The people's court shall support the borrower's request for the lender to return the interest paid in excess of 36% of the annual interest rate.
The interest of private lending is agreed by both parties, but it is not protected by law if it exceeds four times the bank loan interest rate of the same period. That is to say, if the borrower does not repay the money, the creditor brings a lawsuit to the court. If the court makes a judgment, it will only judge the interest at four times the bank loan interest rate of the same period. If the interest exceeds four times the bank loan interest rate of the same period, it will not be judged. 6. The interest rate of private lending can be appropriately higher than the bank's interest rate. The people's courts in various regions can grasp the actual situation in their own regions, but the maximum interest rate should not exceed four times the bank's interest rate for similar loans (including the interest rate itself).
If the limit is exceeded, the interest of the excess part shall not be protected. 7、 The lender shall not include the interest into the principal for high interest. If it is found in the hearing that the creditor has included the interest into the principal for calculation of compound interest, and the interest rate exceeds the limit specified in Article 6, the excess interest will not be protected. 10、 The loan relationship formed by one party by means of fraud, coercion or taking advantage of the other party's difficulties, which violates the other party's true intention, shall be deemed invalid.
If the invalid lending relationship is caused by the creditor's behavior, only the principal will be returned; If the invalidity of the loan relationship is caused by the debtor's behavior, in addition to returning the principal, interest shall also be paid with reference to the interest rate of similar loans of the bank. Article 200 of the Contract Law of the People's Republic of China The interest on the loan may not be deducted from the principal in advance. If the interest is deducted from the principal in advance, the loan shall be returned and the interest calculated according to the actual amount of the loan.
The interest rate of private lending can be appropriately higher than the bank's interest rate, which can be determined according to the actual situation of the region, but the maximum should not exceed four times the interest rate of the same kind of bank loans (including the principal amount of interest rate). If the limit is exceeded, the interest of the excess part shall not be protected. Therefore, the agreed interest rate of private loans is not only protected by law, but also can be higher than the loan interest rate of similar banks, up to four times the bank interest rate.
