Legal basis: the Supreme People's Court's opinions on people's courts' handling of loan cases.
Article 6 The interest rate of private lending may be appropriately higher than that of banks, which shall be specifically grasped by the local people's court according to the actual situation in the region, but the maximum interest rate shall not exceed 4 times that of similar loans of banks (including the principal interest rate). Beyond this limit, the excess interest will not be protected.
Article 10 A loan relationship formed by one party against its true meaning by means of fraud, coercion or taking advantage of others' danger shall be deemed invalid.