According to the relevant provisions of Chinese laws, the interest rate during the loan period is agreed, and the interest on overdue repayment can be calculated according to the interest rate during the loan period. If the interest rate during the loan period is not agreed, it shall be calculated with reference to LPR 1 year at that time. If the overdue interest rate is agreed, the maximum is 4 times of the LPR of 1 year when the contract is established.
Legal basis:
Article 676 of the Civil Code of People's Republic of China (PRC)
If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations.
Article 680 of the Civil Code of People's Republic of China (PRC)
It is forbidden to lend at high interest rate, and the lending rate shall not violate the relevant provisions of the state.
If there is no agreement on the payment of interest in the loan contract, it shall be deemed that there is no interest.
If the loan contract does not specify the payment method of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties' trading methods, trading habits, market interest rates and other factors; Loans between natural persons are regarded as interest-free.
Article 24 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases.
If the borrower and the lender have not agreed on interest, and the lender claims to pay interest, the people's court will not support it.
If the interest agreement between natural persons is unclear and the lender claims to pay interest, the people's court 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's court shall determine the interest according to the contents of the private loan contract, the local or the parties' trading methods, trading habits, market quotation and other factors.
Article 25 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases.
If the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds 4 times the market quotation of one-year loan at the time of the establishment of the contract.