Legislative Issues Of Interest Rates In Private Loans

Private loans have a long history. This kind of financing way has its advantages of its simple procedure and its high utilization of funds, in the modern developed financial society, is still active. In recent years,influenced by macroeconomic situation and the credit policy, private lending activities appear a lot of new situations. Folk lending problems are mainly about the borrowing rate.Settling rate problem plays an important role in reducing the dispute of lending case.The maximum rate standard promulgated more than 20 years. It was used as the referee’s direct basis practiced as a one-size-fits-all model.The author thinks that the restrictive provisions under the current economic development level is too harsh. In order to settle this problem,we should combine the basic system such as unfair as the legitimacy of the interest rate standard. Deducted all or part of the interest in advance of using will be deducted from the principal. Having paid more than the interest of the legal interest rate cap, as a result of party autonomy, should not be returned. Not paid more than the legal limit is judged by the judge on the specific determination of interest rates.The disputing in the way of understanding the interest rate does not necessarily lead to their interest-free loan rates. The parties agree to pay rates, even though controversial understanding of interest rate between them, the principle of contract interpretation to supplement rate payment method should be applied by the judge. Both sides when there is no prescribed or unknown interest rate standard, confirm contract holes to fill rules shall apply. No matter adopting what kind of form should fully considered and respected the autonomy of the parties,to make supplement the interest rate the terms.Overdue interest, a kind of legal fruits should also paid in case of no agreement between the two sides.Interest rate standards is carried out according to the people’s bank lending rates over the same.Overdue interest rates and penalty due to breach of contract case applied at the same time, the judge can adjust, when the parities claim for the overdue interest rate and the amount of liquidated damages the overall too high. Overdue interest standards, within the agreed interest rate of loan interest rate, uses a floating interest rate, higher than the base rate. This reflected the effect of punishment, having more advantageous to the obligations the parties actively.The author applied the basic theory and concept of commercial trial into the case, trying to seek the balance balance between creditors and debtors.The author’s purpose is to combine the freedom of contract with a certain regulation, between the process and results of contract, to realize the justice of contract.