The interest of both parties can be freely agreed, as long as the agreed interest does not exceed the bank's concurrent period.Lending rates
Four times as many are protected by law. Even if it exceeds the bank's loan interest rate four times, as long as the other party is willing to give the law, it will not take the initiative to interfere. Only the party who owes money will be able to repay the ability without charge. If the party is sued to the court, the court will only decide the interest within four times. Now in the same period of our countryBank loanAnnual interest rate
It is 5.6%, multiplied by 4, which is equal to 22.4%, so it is legally protected in this range.
"Several Opinions on the People's Courts Trialing Private Lending Cases"
6. The interest rate of private lending may be higher than the interest rate of the bank. The local people's courts may be specifically controlled according to the actual situation of the region, but the maximum shall not exceed four times the interest rate of the bank's similar loans (including the interest rate). Exceeding this limit, the excess interest is not protected.
7. The lender shall not accrue interest to the principal for high profits. In the trial, it is found that the creditor counts the interest into the principal to calculate the compound interest. When the interest rate exceeds the limit specified in Article 6, the excess interest is not protected.
10. A party shall use the means of fraud, coercion, etc. or the danger of taking the person, so that the borrowing and lending relationship formed by the other party in violation of the true meaning shall be deemed invalid. If the loan and loan relationship is invalid due to the behavior of the creditor, only the principal will be returned; if the loan and loan relationship is invalid due to the debtor’s behavior, in addition to the return of the principal, interest should be paid in accordance with the bank’s similar loan interest rate.
The interest on the borrowings of Article 200 of the Contract Law of the People's Republic of China shall not be deducted from the principal in advance. If the interest is deducted from the principal in advance, the loan shall be returned in accordance with the actual amount of the loan and the interest shall be calculated.