The highest annual interest rate of loans approved by the state is 24%, and the people will not support the part that exceeds 24% in total.
According to Article 29 of Several Opinions on the Trial of Lending Cases by People's Courts, if both borrowers and lenders have an agreement on overdue interest rates, such agreement shall prevail, but the annual interest rate shall not exceed 24%. If the overdue interest rate is not agreed or clearly agreed, the people can deal with it according to different situations:
(1) The people should support the lender's claim that the borrower should pay the interest during the period of capital occupation at the annual interest rate of 6% from the date of overdue repayment, because there is no agreed interest rate during the loan period and no agreed overdue interest rate;
(2) If the interest rate during the loan period is agreed, but the overdue interest rate is not agreed, and the lender advocates that the borrower should pay the interest during the period of capital occupation according to the interest rate during the loan period from the date of overdue repayment, the people should support it.
Article 30 The lender and the borrower have agreed on overdue interest rate, liquidated damages or other expenses. The lender may choose to claim overdue interest, liquidated damages or other expenses, or both, but the people will not support the part that exceeds 24% of the annual interest rate.
Extended data:
"Several Opinions on the Trial of Loan Cases by People's Courts" Article 27 The loan amount specified in debt certificates such as IOUs, receipts and IOUs is generally recognized as the principal. If interest is deducted from the principal in advance, the actual amount lent shall be the principal.
Article 28 After both borrowers and borrowers settle the principal and interest of the previous loan, they will include the interest in the principal of the latter loan and issue a new certificate of creditor's rights. If the previous interest rate does not exceed the annual interest rate of 24%, the amount specified in the reissued creditor's rights certificate can be confirmed as the later loan principal. Excess interest cannot be included in the future loan principal. If the agreed interest rate exceeds the annual interest rate of 24%, and the parties claim that the excess interest cannot be included in the future loan principal, the people should support it.
According to the calculation in the preceding paragraph, the sum of the principal and interest payable by the borrower after the expiration of the loan term cannot exceed the sum of the initial loan principal and the interest of the whole loan term calculated at the annual interest rate of 24% based on the initial loan principal. If the lender asks the borrower to pay more, the people will not support it.