4% monthly interest is equivalent to 0.4% monthly interest, and the annual interest rate is 0.4%* 12=4.8%. The annual interest rate of this loan is 4.8%.

According to the latest private interest rate ceiling, compared with the annual interest rate 15.4%, the annual interest rate of 4.8% is already very low, so the monthly interest rate of 4% is not usury.

According to the provisions in the Notice of the People's Bank of China on Banning Underground Banks and Combating usury, the interest rate of private personal loans shall be determined by both borrowers and borrowers through consultation, but the interest rate determined through consultation between the two parties shall not exceed 4 times (excluding floating) the loan interest rate of financial institutions of the same grade at the same period announced by the People's Bank of China. Those who exceed the above standards should be defined as high-interest loans.

In usury activities, if high-interest lending reaches a certain amount, it constitutes the crime of illegally absorbing public deposits; For the purpose of lending, taking credit funds from financial institutions and lending them to others at a high interest rate, the illegal amount is large, which constitutes the crime of lending at a high interest rate; For the purpose of illegal possession, illegal fund-raising by fraudulent means, with a large amount, constitutes the crime of fund-raising fraud; Usury can easily lead to criminal offences such as illegal detention, kidnapping, injury and fraud; Non-governmental intermediaries and individuals lend at high interest rate with their own funds, which belongs to non-governmental lending behavior. If there is a loan dispute, it belongs to the category of civil adjustment.

Usury interest = loan amount * interest rate * term, which is a common calculation method of loan interest. For example, for a usurer with a monthly interest of 4 points, the loan amount is 654.38+ 10,000 yuan, and the interest of 654.38+0 months is 654.38+000000 * 4% * 654.38+0 = 4,000 yuan.

The capital price of usury refers to the monthly interest rate 1 yuan, and six points are equivalent to the annual interest rate of 72%, while 1 gross is close to 120%, which is 5.3 1% higher than the annual bank lending rate (the lending rate is 2008-12-).

When the credit growth rate of commercial banks slows down, the market demand for private lending will inevitably rise. As private lending enters the era of profiteering, its negative effects are increasing. The voice of strengthening the supervision of private lending is getting higher and higher.

It is worth noting that the ensuing payment crisis and the frequent escape of business owners have also made private borrowers feel insecure, as if they were avoiding an unexploded "time bomb".

It is understood that in this hierarchical model, if the return of the first tier is 25% of the principal, then the second tier is about 18%, the third tier is about 10%, the fourth tier is about 8%, and the lowest is generally 3%. Because there is a multi-level pattern, Wanmu said that the entire private lending network "no one knows how big it is."

In theory, "Yin-Yang IOUs" are enough to support all risks. If the borrower fails to fulfill the oral agreement, then the creditor can use this "foreign debt" to sue and claim his rights and interests, and there is no time limit.