The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum.
Extended data:
First of all, private lending can be paid (interest-bearing loans) or free (interest-free loans), and whether it is paid (interest-bearing loans) is agreed by both parties. Therefore, private lending can stipulate interest.
Secondly, according to the first paragraph of Article 211 of the Contract Law, "If there is no agreement or unclear agreement on interest payment in the loan contract between natural persons, it shall be regarded as not paying interest". Only when both parties agree in advance in writing or orally that private lending is interest-bearing lending, the lender can ask the borrower to pay interest when repaying the principal; Otherwise, it is regarded as an interest-free loan, and the lender may not require the borrower to pay interest.
Furthermore, according to the second paragraph of Article 211 of the Contract Law, "If the loan contract between natural persons stipulates to pay interest, the loan interest rate shall not violate the provisions of the state on limiting the loan interest rate" and "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases", the interest rate agreed by both borrowers and borrowers shall not exceed 24% per annum;
If the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it; The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the part of the interest paid that exceeds 36% per annum.
On August 20, 2020, the Supreme People's Court issued a judicial interpretation, "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 four times the listed interest rate in the one-year loan market when the contract is established.
The' one-year loan market quotation' mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20, 20 19.
Baidu Encyclopedia-Interest on Private Lending