What is the legal interest rate?

In the process of borrowing money, we all need to pay a certain remuneration for the funds we use, that is, the interest on the loan. On the premise of safety, we naturally want the interest to be as small as possible, but there are also some borrowers who fall into the trap of financial fraud just for the sake of "low interest rates". So how can you find a reliable and reliable borrowing platform with low interest rates?

First of all, we need to choose some regular big brands, and the loan products of regular brands will be more reliable and formal;

Secondly, in the regular brand, we need to compare the loan interest rate and interest fee of each company. Among them, Du Xiaoman Finance's money is easy to apply, fast to lend, flexible to borrow and repay, and users can take the initiative to apply. The interest fee for spending money is transparent, the big brand is more reliable, the interest rate is low, the daily interest rate is as low, the interest rate is as low as 2 yuan a day when borrowing 10,000 yuan, and the maximum amount can be borrowed 200,000 yuan.

This is provided by Kangbo Finance, which focuses on the interpretation of financial hot events, the popularization of financial knowledge, adheres to professionalism, pursues fun, makes financial content that people can understand, and conveys financial value in a vivid and diverse way. Hope this helps.

According to the "Notice of the People's Bank of China on Banning Underground Money Banks and Cracking Down on Usury Behavior", the interest rate of private DAO personal loans shall be determined by the borrower and the borrower through negotiation, but the interest rate negotiated by the two parties shall not exceed 4 times the loan interest rate of financial institutions of the same period and grade (excluding floating) announced by the People's Bank of China. If it exceeds the above standards, it should be defined as usurious lending.

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 stipulates that if the interest rate agreed between the borrower and the borrower does not exceed 24% per annum, 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 between the borrower and the borrower exceeds 36% per annum, the interest agreement on the excess part shall be invalid. Where the borrower requests the lender to return the interest paid in excess of 36% of the annual interest rate, the people's court shall support it.

Since September 1, 2015, the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases came into effect, and the criterion for usury is no longer based on whether it exceeds 24% per annum, but on whether it exceeds 36%, that is, any interest rate not exceeding 36% per annum is not usury.

Legal analysis: The state stipulates that the interest does not exceed the principal of the loan multiplied by the annual interest rate, because the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" clearly stipulates that the annual interest rate shall not exceed four times the interest rate of the one-year loan market, and according to the latest data, the legal annual interest rate is.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases Article 26 Where the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except where the interest rate agreed upon by both parties exceeds four times the one-year loan market interest rate at the time of the conclusion of the contract.

The "one-year loan market ** interest rate" mentioned in the preceding paragraph refers to the one-year loan market ** interest rate authorized by the People's Bank of China to be released monthly by the National Interbank Lending Center from August 20, 2019.

Generally, it is calculated based on 4 times the annual loan market ** interest rate, and in this year's view, the loan market ** interest rate is. The upper limit of judicial protection of private lending interest rates is, so we need to pay attention to the fact that we must stay away from private lending in life, only in this way can we better reduce our losses, if there is a need for funds, we can also choose to go to a regular bank for loans, which can better protect our property security, I hope everyone can realize this.

1. How to apply for a loan when going to the bank.

The bank depends on the borrower's qualifications, so we must ensure that our filial piety credit is good in life, so that we can help us better handle the loan, and at the same time go to the bank to apply for a loan before you must bring the relevant documents to prove it, so that it can not affect our life, generally speaking, the bank has 4 aspects of evaluation for users, namely personal information, personal finance, information personal credit history and other personal behavior records, Therefore, we can see that we must be strict with ourselves in life.

2. How to improve our personal credit.

Personal credit score and personal credit rating affect the amount of the next payment and the speed of the next payment, so we need to pay attention to the fact that there must be no overdue behavior in life, we all know that people now use credit cards, but if the credit card is overdue, it will also affect our personal imitation loan, I hope everyone can understand this matter.

3. How does China define legal interest?

According to Article 211 of the Contract Law of the People's Republic of China, the interest rate of the loan agreed in the loan contract between natural persons to pay interest shall not violate the provisions of the state on restricting the interest rate of borrowing.

The "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" explains:

1.Interest 24, supported by the People's Court.

Interest 36, the borrower voluntarily pays it, and the lender is required to return it, but the people's court does not support it.

3.Interest rate 36, the interest agreement for the part exceeding 36 is invalid, and the borrower requests the lender to return the interest paid in excess of the annual interest rate of 36, the people's court shall support it.

The state stipulates that the interest does not exceed the principal of the loan multiplied by the annual interest rate, because the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" clearly stipulates that the annual interest rate shall not exceed four times the interest rate of the one-year loan market, and according to the latest data, the legal annual interest rate is.

According to the current interest rate level, the legal interest rate stipulated by the state is not more than the annual interest rate, and the excess part is not protected by law.

Provisions on interest rate caps: New regulations in September 2020: The borrowing interest rate shall not exceed four times the one-year loan market** interest rate LPR (for 1-year tenors announced from April 2020 to the present, four times is.

Legal analysis: The annual interest rate of private loans cannot be exceeded, and if it is exceeded, the law will not protect it. The upper limit of judicial protection for private lending interest rates is:

The Supreme People's Court issued new regulations to clearly determine the upper limit of judicial protection for private lending interest rates based on four times the one-year loan market ** interest rate (LPR) issued by the National Interbank Lending Center authorized by the People's Bank of China on the 20th of each month, replacing the "two lines and three zones based on 24% and 36%" in the original Provisions. Based on the one-year loan market** interest rate released on July 20, 2020, the upper limit of judicial protection for private lending interest rates is a significant decrease from the previous 24% and 36%.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

Article 30 Where the lender and the borrower have agreed on both the overdue interest rate and the liquidated damages or other expenses, the lender may choose to claim the overdue interest, liquidated damages or other expenses, or may claim them together, but the people's court shall not support the part that exceeds four times the interest rate of the one-year loan market at the time of the conclusion of the contract.

Article 32: After the implementation of these Provisions, these Provisions apply to first-instance private lending dispute cases newly accepted by the people's courts.

If the borrowing occurred before August 20, 2019, the upper limit of the protected interest rate may be determined by referring to four times the one-year loan market** interest rate at the time of the plaintiff's lawsuit.