The case says that "code" does not stipulate the loan interest. Can I ask for it after overdue repayment

By Jia Yongjiao

　 [Case]

In 2019, Mr. Wang borrowed RMB 40000 from Mr. He and issued an IOU, but no interest was agreed, only the repayment time was agreed. After 18 months of repayment period, He still failed to repay. Wang claimed for many times without success, and sued him to the People's Court of Bachu County, requiring He to return his loan principal of 40000 yuan and pay overdue interest at the market quoted interest rate. He approved the repayment of the loan principal, but not the overdue interest.

[Article]

Article 676 of the Civil Code of the People's Republic of China Where the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations.

Article 680 Lending at high interest rates is prohibited, and the interest rate of the loan may not violate the relevant provisions of the State. If the loan contract does not stipulate the payment of interest, it shall be deemed that there is no interest. If the loan contract does not clearly stipulate the payment of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or parties' trading methods, trading habits, market interest rates and other factors; Borrowings between natural persons shall be deemed as interest free.

　　 [Interpretation]

"The private lending relationship between the Plaintiff and the Defendant is the true intention of both parties, which does not violate the mandatory provisions of laws and administrative regulations, and is legal and valid." Aisha Hazi, a judge of the Civil Trial Division of the People's Court of Bachu County, said that after Wang provided the loan to He, He failed to repay the loan as scheduled, which should be a breach of contract. The two parties did not agree on the interest on the IOU. According to the law, the interest is deemed not to be paid during the borrowing period, but Mr. He failed to perform the repayment obligation within the period specified on the IOU. Therefore, the overdue interest claimed by Wang is in line with the law and should be supported.

Aisha believes that the interest is the part of the borrower that exceeds the principal when repaying the loan, which can be understood as the use fee of the currency within a certain period of time, while the overdue interest is the overdue penalty interest arising from the borrower's failure to perform the repayment obligation in accordance with the agreement or the contract. From this point of view, overdue interest has a certain punitive nature. In this regard, the court made a judgment that Mr. He returned the principal of Mr. Wang's loan of 40000 yuan, as well as the overdue interest paid at the market quoted interest rate until the actual return date of the principal of the loan.

Aisha reminded everyone that with the rapid development of the economy and society, private lending is becoming more and more common. Many people fall into the private lending trap and get involved in legal proceedings because of the embarrassment, carelessness, excessive trust and other reasons. These seemingly friendly and mutually beneficial private lending behaviors actually have great risks, and the risks are easily ignored. Therefore, both the lender and the borrower should be cautious, put the scandal in front, and agree on the interest to avoid unnecessary losses. (organized by Yang Shuhan, reporter of Tianshan.com Xinjiang Daily)