The law stipulates how to calculate the penalty interest of overdue loans. If the penalty interest is calculated according to the different contracts signed by both parties, the overdue loan will be returned to the lender within the same agreed period.
If the borrower fails to abide by the loan agreement, it is a breach of contract and should bear the liability for breach of contract.
The funds invested by banks in such loans may or may not be recovered in the future. There is a great possibility of losses, and commercial banks usually have to impose a penalty interest on such loans. Overdue loans are the problem assets of banks. Commercial banks should maintain a high capital reserve, and the reserve ratio is generally 50%.
During the performance of the loan contract, the interest paid by the borrower can be calculated according to the agreed interest rate as long as it does not violate the provisions of the People's Bank of China on the upper and lower limits of the loan interest rate of financial institutions, in which private lending is not higher than 4 times the bank loan interest rate.
1. What is the calculation method of overdue loan interest?
First, according to the interest rate during the contract period. Within the performance period stipulated in the loan contract, the borrower shall pay interest, as long as it does not violate the loan interest rate of the relevant financial institutions of the People's Bank of China, and the loan ceiling is not higher than the bank loan interest rate.
Second, calculate the interest according to the relevant regulations of the People's Bank of China. The loan interest rate still abides by the original agreement. In case of interest rate adjustment, interest will not be calculated by stages. For overdue loans, the interest will be calculated by stages according to the interest rate adjusted in different periods determined by the People's Bank of China. At the same time of collecting overdue interest, collect default interest according to a certain proportion, or adjust the default interest rate of overdue loans determined by the People's Bank of China in combination with default interest.
At the same time, for interest settlement during and after the performance of the contract (short-term loans can also be settled monthly within one year), the interest settlement date of each quarter is the 20th day at the end of the quarter. If the borrower fails to pay the interest on time, it will be compounded.
Second, the legal provisions of the loan penalty interest
After the conversion, the penalty interest of private lending shall not exceed 4 times the listed interest rate of the loan market during the establishment of the loan contract. The penalty interest here refers to the interest that the borrower may need to pay to the lender after the deadline. If there is a penalty interest stipulated in the loan contract, and the agreement is not illegal, the amount of penalty interest can be determined according to the agreement after the default occurs. 1. If the borrower and the lender do not agree on interest, the people will not support it if the lender claims to pay interest. The interest agreement between natural persons is not clear, and if the lender advocates paying interest, the people will not support it. Except for the loan between natural persons, if the agreement on the loan interest between the borrower and the lender is unclear, and the lender claims interest, the people shall determine the interest according to the contents of the private loan contract and the local or the parties' trading methods, trading habits, market quotation and other factors. 2. If the lender requires the borrower to pay interest at the interest rate agreed in the contract, the people shall support it, except that the interest rate agreed by both parties exceeds four times the listed interest rate in the one-year loan market at the time of the establishment of the contract. The market quotation of one-year loans mentioned in the preceding paragraph refers to the market quotation of one-year loans issued monthly by the National Interbank Funding Center authorized by the People's Bank of China. The loan amount specified in the debt certificates such as IOUs, receipts and IOUs is generally recognized as the principal. If interest is deducted from the principal in advance, the actual amount lent shall be the principal. 3. After the borrower and the borrower settle the loan principal and interest in the early stage, the interest will be included in the loan principal in the later stage and the creditor's rights certificate will be reissued. If the interest rate in the early stage does not exceed four times the market quotation of the one-year loan when the contract is established, the amount specified in the reissued creditor's rights certificate can be confirmed as the loan principal in the later stage. The overcharged interest shall not be used as the loan principal in the future. According to the calculation in the preceding paragraph, if the sum of the principal and interest payable by the borrower after the expiration of the loan term exceeds the sum of the interest of the whole loan term based on the initial loan principal and calculated at four times the quoted interest rate of the one-year loan market when the contract is established, the people will not support it. 4. For those citizens and units whose lenders want their lending behavior to be repaid, when others borrow money from them, they will generally directly express their hope that the other party will pay interest to them during the loan period. If both parties can reach an agreement on interest, they can write the specific interest amount or interest rate into the loan agreement. Legal Basis "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases" Article 29 If there is an agreement between the borrower and the lender on the overdue interest rate, such agreement shall prevail, but it shall not exceed four times the listed interest rate of the one-year loan market when the contract is established. If there is no agreed overdue interest rate or the agreement is unclear, the people can deal with it according to different situations: (1) If there is no agreed interest rate within the loan term or overdue interest rate, and the lender claims that the borrower shall bear the liability for breach of contract for overdue repayment from the date of overdue repayment, the people should support it; (2) If the interest rate during the loan period is agreed, but the overdue interest rate is not agreed, and the lender advocates that the borrower should pay the interest during the period of capital occupation according to the interest rate during the loan period from the date of overdue repayment, the people should support it. Article 30 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. Lenders can choose to claim overdue interest, liquidated damages or other expenses, or both, but the people will not support the part that exceeds the quoted interest rate of the one-year loan market at the time of the establishment of the contract. Article 25 If the borrower and the lender have not agreed on interest, and the lender claims to pay interest, the people will not support it. The interest agreement between natural persons is not clear, and if the lender advocates paying interest, the people will not support it. Except for the loan between natural persons, if the agreement on the loan interest between the borrower and the lender is unclear, and the lender claims interest, the people shall determine the interest according to the contents of the private loan contract and the local or the parties' trading methods, trading habits, market quotation and other factors. Article 26 If the lender requires the borrower to pay interest at the interest rate agreed in the contract, the people shall support it, except that the interest rate agreed by both parties exceeds four times the listed interest rate in the one-year loan market when the contract is established. The market quotation of one-year loans mentioned in the preceding paragraph refers to the market quotation of one-year loans issued monthly by the National Interbank Funding Center authorized by the People's Bank of China. Article 27. The loan amount specified in debt certificates such as IOUs, receipts and IOUs is generally recognized as the principal. If interest is deducted from the principal in advance, the actual amount lent shall be the principal. Article 28 After the borrower and the borrower settle the loan principal and interest in the early stage, the interest shall be included in the loan principal in the later stage, and the debt certificate shall be reissued. If the interest rate in the early stage does not exceed four times the market quotation of the one-year loan when the contract is established, the amount specified in the reissued creditor's rights certificate can be confirmed as the loan principal in the later stage. The overcharged interest shall not be used as the loan principal in the future. According to the calculation in the preceding paragraph, if the sum of the principal and interest payable by the borrower after the expiration of the loan term exceeds the sum of the interest of the whole loan term based on the initial loan principal and calculated at four times the quoted interest rate of the one-year loan market when the contract is established, the people will not support it.
3. How to calculate the interest in loans overdue?
Late payment fee = (minimum repayment amount-the amount repaid before the due repayment date) × interest.
The interest and compound interest of overdue loans shall be calculated to the due date of performance determined by the judgment. If the borrower fails to repay the loan principal and interest on schedule, the bottom line of civil liability for breach of contract is the due date of performance determined by the judgment.
Once the judgment determines the date of payment, the borrower is not allowed to continue to breach the contract after the judgment takes effect, which is the coercive force, binding force and execution of the judgment. If the borrower fails to pay off after the maturity, it shall bear the responsibility of delaying the execution of the judgment according to the provisions of Article 232 of the Civil Procedure Law of China, that is, paying double interest on the delayed payment.
If the borrower pays off in advance before the expiration of the performance period determined by the judgment, the interest payment shall be reduced accordingly on the basis of the judgment. This is a voluntary settlement between borrowers and does not violate the law.