Legal analysis
According to relevant regulations, the self-operated loan interest rate and entrusted loan interest rate of small loan companies must be controlled within 4 times of the benchmark interest rate of loans of the same grade announced by the central bank in the same period. In other words, the maximum interest rate of small loans shall not exceed 4 times of the bank loan interest rate in the same period, and both parties can negotiate within 4 times of the bank loan interest rate in the same period. If the current annual interest rate of one-year bank loans is 5.85%, the annual interest rate of one-year private lending shall not exceed 23.4%. It can be concluded that the loan interest rate within 4 times of the bank's loan interest rate in the same period belongs to the legal interest rate, and the loan interest rate above 4 times belongs to usury, and the usury part is not protected by law. 2. What is the general interest rate for small loans of loan companies? It is understood that many small loan companies have small loan products at present. Because the loan amount is not high, the general interest rate is calculated by monthly interest rate or monthly management interest rate. For most small loan companies, the monthly interest rate or monthly management fee of such unsecured small loans is generally between 1.7%-2.5%. If the interest rate of small loans is too low, we should carefully consider the formality of lending institutions. The interest rate of small loans is usually not very low, mainly short-term loans, and no collateral is required. In order to control risks, lending institutions generally set higher interest rates. Everyone needs to understand this and beware of fraudulent lending institutions. It should be noted that if you want to find a formal small loan company to apply for a small loan, I suggest you apply through formal channels. There are also many formal online loan application platforms on the Internet. You might as well pay attention to the difference and remember not to pay any fees before the loan. Formal lending institutions usually do not require borrowers to pay before lending.
legal ground
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 25 If the lender requests the borrower to pay interest at the interest rate agreed in the contract, the people's court shall support it, except that the interest rate agreed by both parties exceeds four times the market rate of one-year loan when the contract is established. The "one-year loan market quotation" mentioned in the preceding paragraph refers to the one-year loan market quotation issued monthly by the National Interbank Funding Center authorized by the People's Bank of China from August 20th, 20th, 20th19th.