Now all kinds of online loan apps appear, which makes it very convenient to borrow money. Is the interest of online loan too high and legal? How much is the interest of online loan normal?
According to the general principles of civil law of China, the interest rate of private lending can be appropriately higher than that of bank lending, but not higher than 4 times of that of bank online lending, otherwise it will be considered as usury, and the safety of investors' funds will not be protected by law.
Is online loan interest too high legal
The interest rate of each short-term online loan is about 6%, so the boundary of usury is more than 24%. With the central bank's interest rate cut, the bank's short-term online lending rate is currently 5.6%, so the line of usury will fall to 22.4%. Under such intuitive figures, investors should not easily believe that those platforms with annual earnings of up to 20-30% are safe platforms.
With the legal definition, it can be clear that a reasonable interest rate will never be higher than 22.4%, otherwise there will be greater risks. From the perspective of CBRC's qualitative analysis of P2P, P2P mainly serves the loan demand of small and medium-sized micro enterprises. How much interest rate is reasonable depends on the actual bearing capacity of small and medium-sized micro enterprises.
In the current market environment, the online loan interest rate that small and medium-sized micro enterprises can bear is limited after all. If the interest rate paid each month accounts for a large proportion of the income, or even exceeds the income, who can guarantee that the loan enterprises can repay the principal and interest on schedule? Of course, the general corporate loans are used for emergency, such as bank online loans due, or urgent need to repay the loan, etc.
The period of such online loans is short, and enterprises can generally bear higher interest rates, but if it is a long-term online loan, the risk will be multiplied. In addition, it also depends on the comprehensive strength of the borrowing enterprises. Although the borrowing from P2P platform is generally small and medium-sized enterprises, there is still a gap between enterprises. If the comprehensive strength of the enterprise is strong, then the ability to bear the risk will be stronger, and it is more likely to bear the high interest rate online loan within a certain period of time.
According to the notice of the people's Bank of China on banning underground banks and cracking down on usury, the lending interest rate of private individuals shall be determined by both parties through consultation, but the interest rate negotiated by both parties shall not exceed 4 times of the loan interest rate (excluding floating) of the same grade and the same period published by the people's Bank of China. If the above criteria are exceeded, it shall be defined as high interest 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 by both parties does not exceed 24% of the annual interest rate, and the lender requests the borrower to pay the interest at the agreed interest rate, the people's court shall support it.
If the interest rate agreed by the borrower and the borrower exceeds 36% of the annual interest rate, the interest agreement for the excess part shall be invalid. If 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.