The interest can be freely agreed upon by both parties as long as the agreed interest does not exceed the bank's contemporaneousLending rates
Four times, are protected by law. Even if it exceeds four times the bank lending rate over the same period, as long as the other side is willing to give the law will not take the initiative to intervene, only those who owe money have no ability to repay, was sued to the court, the court will only rule the interest within four times. Now the same period in our countryBank loanAnnual interest rate
Is 5.6%, multiplied by 4, equal to 22.4%, so within this range is legally protected.
Several Opinions on Trial of Private Lending Cases by People's Courts
Sixth, the interest rate of private lending may be higher than the interest rate of banks. People's courts in different regions may have specific control over the actual situation in the region, but the maximum interest rate may not exceed four times (including the interest rate) of interest rates of similar lending banks. Exceeds this limit, the excess part of the interest is not protected.
Seven, the lender shall not be included in the principal interest payments for profit. During the trial, when creditors found interest in principal amount calculated compound interest, the interest rate exceeded the limit set in Article 6, the excess part of the interest would not be protected.
X. One party shall use fraudulent, intimidating or other means of danger or risk of taking passengers, so that the lending relationship formed by the other party against the true meaning shall be deemed invalid. Invalid loan relationship is caused by the behavior of the creditor, and only the principal is returned; the loan relationship is invalid caused by the debtor's behavior. In addition to returning the principal, interest should also be paid according to the interest rate of similar loans of the bank.
Article 200 of the "Contract Law of the People's Republic of China" shall not be deducted from the principal amount of interest in advance. If the interest is deducted from the principal in advance, the loan shall be returned in accordance with the actual loan amount and interest shall be calculated.