What is the upper limit of loan interest rate for microfinance companies?

The upper limit of the loan interest rate of microfinance companies shall not exceed 4 times of the benchmark interest rate of the central bank in the same period. The lower limit of the loan interest rate of a microfinance company shall not be less than 0.9 times of the benchmark interest rate of the central bank in the same period.

The interest rate of loans issued by small loan companies exceeds the benchmark interest rate of loans announced by the central bank for the same period by four times, and the court will not protect those who ask for overpayment. After the completion of the loan contract, the court refused to support the borrower's request to return the excess part on the grounds that the contract was invalid. If the loan contract has not been fulfilled and the borrower claims to offset the principal and interest of the loan with the excess, the court shall support it.

The specific implementation of the loan interest rate standard of microfinance companies depends on the qualifications of the applicants. Generally speaking, individuals with poor personal qualifications get higher loan interest rates, which is also a way for microfinance companies to control loan risks.