Research On The Legal Regulation Of China's Private Lending Interest Rate

Private lending has a long history that play a role in mutual help to make up what the other lacks,rescue the desperately poor and help those who were in difficulty and economic prosperity.In recent years,private lending is still playing an active role in social and economic areas.Recently,as for vigorous development of economy,private lending in national financial and credit markets is becoming increasingly important,it as a simple and convenient way of financing which used by the people of all ages.It can help us with business,personal productivity and other aspects of life in urgent need,and indeed can effectively compensate for the lack of formal financial institutions,credit,capital flows to accelerate social and utilization played an active role in promoting.From a practical point of view,the legal norms of private lending interest rates epitomized adjustments or regulations.Our long-term implementation of a similar bank lending rates may not exceed with the " four times' rate of red line" which is the highest rate of private lending quota system.But from 1th9 2015,the implementation of the "trial of the case the provisions of private lending" which narrated in the Article 26 established a annual interest rate of 24% and 36% annual interest rate as the standard "two-wire three areas",the highest rate quota system,which provides a new path for the legal regulation of private lending interest rates,but it's efficient is remains to be seen.In this paper,there is a total of four parts.The first part is about the legal regulation of private lending interest rate dilemma.The solution of Lai and Xie certain private lending disputes,in our private lending disputes controversial issues,such as how to determine the amount of loan principal,how to convent the interest,and how the interest rates and other issues identified are analyzed,this paper points out that the private lending interest rate is facing with the problem of legal regulation;while the development history of private lending interest rates and the "quadruple red line" of the background highest rate quota system also need to be analyzed;as to the Supreme Court's promulgated judicial interpretation and meaning of "two lines and three districts ",this paper also make an analysis of the origin of the quota system,the highest rate of three districts.The second part is mainly talk about the analysis on the judicial practice private lending interest rate.From the judicial practice,regulation of private lending interest rates mainly relates to interest rates applicable standard presumption relationship overdue interest and overdue penalty interest on overdue when no agreement,both of lenders and borrowers interest agreement is not clear presumption rules prohibit compounding and other issues.The Supreme Court's private lending disputes trial provisions which made a more clearly defined,especially in favor of the unity of judicial practice.Private lending disputes trial provisions in Article 26 has established that the annual interest rate of 24%-36% is the standard legal claims,incomplete claims and illegal debt that in "two lines and three areas" is the highest rate quota system which is the original review and optimization for the "four times' rate" regulation.Compared with the original "four times' rate" regulation,the new "two lines and three areas" will be the highest rate quota system in the past,it is a natural part of the debt which is more than the annual interest rate of 36%,it crossed over part of the public authority to intervene,and an increase of 24-36% of the buffer zone,so that the interest rate regulation of private lending will be more flexibly.The third part is about the successful experience of foreign country's private lending interest rate in legal regulation.About the regulation of private lending interest rates,the United States has taking administrative control of public power which is exercised by the government in many ways that the government announced in advance the legal interest rate cap will be punished.But the states have different approaches,the Germany has taken "subjective judgment approach" by the court,that is the exercise of discretion by the judge,discretion and subject to adjustment lending interest rates stipulated in the contract constitutes "excessive interest" in hand;and the French approach is to allow the parties with reference to bank lending similar transactions interest rate adjustment,the judge also through the exercise of discretion on the ceiling lending interest rate will be a certain degree of correction;while the Japan supervision of private lending is follow the government-led model,which defined the highest standard contract rate that is a kind of more stringent restrictions.The experience from abroad prove that the private lending interest rate regulation basically setting a statutory limit,but strict or lenient level with the adjustment of interest rate regulation at different stages of economic development and national economic policies and continuous adjustment;and the interest rate regulation should cooperate with the primarily legislative,executive and judicial.The last part is about the improvement of legal regulation of private lending proposal.Chinese folk lending rate regulation system is not so perfect,we have to recognize that the legal status of private lending is not good,the implementation of classification regulation and consumer lending have set a reasonable interest rate ceilings,we also should take measures to perfect the sound system and other related aspects.