The legal basis is Article 6 of the Supreme People's Court's Opinions on People's Courts Handling Lending Cases: the interest rate of private lending can be appropriately higher than that of banks, and local people's courts can specifically grasp it according to the actual situation in the region, but the maximum interest rate shall not exceed 4 times (including interest rate) of similar loans of banks. Beyond this limit, the excess interest will not be protected.
Article 10 of the Supreme People's Court's Opinions on the Trial of Lending Cases by People's Courts: The loan relationship formed by one party by fraud, coercion or taking advantage of the danger of others in violation of its true meaning shall be deemed invalid.
Article 11 of the Supreme People's Court's Opinions on People's Courts Handling Lending Cases: Lenders know that borrowers borrow money for illegal activities, and their lending relationship is not protected.
Article 13 of the Supreme People's Court's Opinions on People's Courts Handling Loan Cases stipulates that in the loan relationship, the person who only plays the role of contact and introduction shall not bear the guarantee responsibility. If there is a real intention to guarantee the performance of the debt, it shall be recognized as a guarantor and bear the guarantee responsibility.