On the morning of August 6, the Supreme People's Court held a press conference and issued the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases." The regulation was adopted by the Supreme People's Court Judicial Committee at its 1655th meeting on June 23, 2015; the regulations shall come into force on September 1, 2015.
The "Regulations" pointed out that it is necessary to control the upper limit of private lending rates. In addition to the convenience of supervision by the government and financial regulatory authorities, the regulation of private lending rates should also consider the real needs of both lenders and borrowers as market players. The loan interest rate of China's formal financial market is in a period of change. It has gone through the national unified loan interest rate, to the floating rate of the upper and lower limits of the national benchmark interest rate, and then to the lifting of the upper limit of the loan interest rate in 2004, and the process of removing the floating lower limit in 2013. . In the judicial practice of our country, the benchmark interest rate of the loan announced by the central bank is generally used as the “bank similar loan interest rate” in the referee. With the advancement of China's interest rate marketization reform process, it is imperative to reform the judicial policy with four times the benchmark lending rate as the upper limit of interest rate protection. How to adjust the private lending interest rate ceiling, what mode to adopt, and how to determine the fixed interest rate cap standard. The problems in this series of trial practice need to be answered.
The contents of the Regulations on private lending rates and interest mainly include:
1. The borrower and the lender have no interest, or the interest between the natural persons is unclear. The lender has no right to claim the borrower to pay interest during the loan period;
2. The interest rate agreed by the borrower and the lender does not exceed 24% of the annual interest rate. The lender has the right to request the borrower to pay interest at the agreed interest rate. However, if the interest rate agreed by the borrower and the lender exceeds the annual interest rate by 36%, the interest of more than 36% of the annual interest rate is exceeded. It shall be deemed invalid and the Borrower shall have the right to request the lender to return the interest paid in excess of 36% of the annual interest rate;
3. If the interest is deducted from the principal in advance, the people's court shall determine the principal amount according to the actual amount of the loan;
4. Except as otherwise agreed by the borrower and the lender, the borrower may repay the loan in advance and calculate the interest according to the actual borrowing period. In addition, this section also provides for issues such as overdue interest rates, voluntary interest payments, and compound interest.