Key practical points:
• Interest exceeding four times the one-year LPR at contract time is not protected by the court.
• The old caps (24% and 36%) were abolished and replaced by a standard tied to the variable LPR.
• A loan is usually proven by a written IOU (借条) and evidence of actual delivery of the funds.
• Interest may not be deducted from the principal in advance; only the sum actually delivered counts.
• Lending money borrowed from banks in order to re-lend it at interest may void the contract.
• Document the loan in writing and keep proof of transfer to protect your right to repayment.
💼 Contracts
SPC Provisions on Private Lending Cases · Yalla China
最高人民法院关于审理民间借贷案件适用法律若干问题的规定 / SPC Provisions on Private Lending Cases
📝 Overview
Judicial provisions governing lending among individuals and non-bank businesses, chief among them the judicially protected interest-rate cap. The cap is four times the one-year Loan Prime Rate (LPR) at the time of contract.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
🕒 Updated: 16 March 2026