Article 26 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases, if the interest rate agreed by the lender and the borrower does not exceed the annual interest rate of 24, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it. If the interest rate agreed by the borrower and the borrower exceeds the annual interest rate by 36, 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 that has been paid in excess of 36% of the annual interest rate.
2、 Harm of usury What are the harms of usury? 1 Although usury can solve the problem of fund shortage in a short time, the interest rate is too high, causing excessive burden on oneself. 2 Some illegal usury with extremely high interest rate often leads to the situation that the income growth of the borrower is not enough to pay the interest of the loan. If the loan cannot be repaid in time, it will cause family problems, or even divorce, If it is serious, the family will be destroyed and the people will die. What are the harms of usury? 1. The interest agreement of usury is too high, causing the borrower to bear too much. 2. The collection of usury is violent, damaging the economic order and social stability. 3. The arbitrariness of usury behavior has greater risks. The disputes and cases caused by the failure to repay the loan on time have increased, affecting the stability of the society. 4. The high interest also increases the burden on enterprises, As a result, the use of enterprise funds has entered a vicious circle.
3、 What are the reasons for the existence of usury? At present, individuals need to borrow money from banks. In addition to consumer loans such as housing loans and car loans, other personal loans generally require collateral, although a few banks provide credit loans that do not require any collateral. But it only faces some specific high-quality customers identified by the bank. The high threshold of the bank stopped many people. No money can be raised through normal and open channels, and there is a market for private lending and even some underground usury. In addition, because most private enterprises lack integrity, some financial institutions fear that the money lent to private enterprises will become bad debts, so they dare not cooperate with enterprises easily. Therefore, when some small enterprises are in urgent need of funds and cannot obtain them from banks in the process of development, they can only "tide over difficulties" by borrowing usury. For rural areas, only credit cooperatives can provide loans because banks in various countries have withdrawn from the county area. This is far from meeting the demand. The Rural Department of the Development Research Center of the State Council once conducted a questionnaire survey on nearly 2000 farmers, and found that only about 15 farmers can obtain loans from formal rural financial institutions. In order to avoid "bad debts", banks and credit cooperatives tend to be very careful when lending. In addition, some borrowers have poor credit awareness or repayment ability. To be safe, they generally lend cautiously. Compared with bank loans, usury conditions are flexible, procedures are simple and fast, time is not as tight as bank cards, and it can often be delayed for several days or renewed. Therefore, farmers are more inclined to usury loans than bank loans. The reform of China's financial system lags behind economic growth and the development of formal finance lags behind, providing a great space for the survival and development of informal finance. The four major state-owned commercial banks withdrew from the county seat. Gradually shrink the network, resulting in a gap in urban and rural credit. The unreasonable urban and rural structure and regional structure of finance provide a development opportunity for private loans.
