Now all kinds of online loan apps appear, which makes it very convenient to borrow money. Is it legal that the interest of online loan is too high? Is it illegal to repay the money? How much is the interest of online loan normal? Let's learn some basic knowledge about online loan with Xiaobian.
China's "general principles of civil law" stipulates that the interest rate of private lending can be appropriately higher than that of bank lending, but it should not be higher than four times that of bank online lending, otherwise it will be regarded as usury, and investors' capital security will not be protected by law.
Is online loan interest too high legal
The short-term net loan interest rate is about 6%, so the line of usury is more than 24%. With the central bank's interest rate cut, the current bank short-term online lending rate is 5.6%, so the line of usury will drop to 22.4%. Under such intuitive figures, investors should not easily believe that those platforms with annual returns as high as 20% and 30% are safe.
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. According to the CBRC's qualitative analysis of P2P, P2P mainly serves the borrowing needs of small, medium and micro enterprises. How much interest rate is reasonable for these loans to small, medium and micro enterprises depends on the actual bearing capacity of small, medium and micro enterprises.
In the current market environment, the level of online loan interest rate that small, medium and micro enterprises can bear is limited after all. If the monthly interest rate accounts for a large proportion of the income, or even exceeds the income, who can guarantee that the borrowing enterprise can repay the principal and interest on time? Of course, the general enterprise loans are used for emergency, such as the maturity of bank online loan, or the urgent need to repay the loan, etc.
This kind of online loan has a short cycle, and enterprises can generally bear a higher interest rate, but if it is a long-term online loan, the risk will be multiplied. In addition, it also depends on the comprehensive strength of borrowing enterprises. Although the borrowers from P2P platforms are generally small, medium and micro enterprises, there is still a gap between enterprises. If the comprehensive strength of the enterprise is strong, then the ability to bear risks will be stronger, and it is more likely to bear the high interest rate online loan for 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 interest rate of private personal loans shall be determined by both sides through negotiation, but the interest rate negotiated by both sides shall not exceed 4 times of the interest rate (excluding floating) of the same period and grade of loans of financial institutions announced by the people's Bank of China. Those exceeding the above criteria should 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 to 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 according to the agreed interest rate, the people's court shall support it.
The interest rate agreed by both parties exceeds 36% of the annual interest rate, and the interest agreement for the excess part is invalid. If the borrower requests the lender to return the interest that has been paid in excess of 36% of the annual interest rate, the people's court shall support it.