Legal basis: Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 27 After the principal and interest of the previous loan have been settled, the borrower and the lender will include the interest in the principal of the latter loan and issue a new creditor's right certificate. If the interest rate in the early stage does not exceed four times the market quotation of the one-year loan when the contract is established, the amount specified in the reissued creditor's rights certificate can be confirmed as the loan principal in the later stage. The overcharged interest shall not be used as the loan principal in the future.
According to the calculation in the preceding paragraph, if the sum of the principal and interest that the borrower should pay after the expiration of the loan term exceeds the sum of the interest of the whole loan term based on the initial loan principal and calculated according to the market quotation of the one-year loan at the time of the establishment of the contract, the people's court will not support it.