Justice Issues Of Private Lending Interest Rates

Since the beginning of the21st century, with the deepening of reform and opening up and rapid economic development, there is a lot of cases happening due to the lending relationship, underground banks. These cases not only seriously disrupted the order of the market economy, but also disrupted the normal administration of justice order, like the case of Wu Ying. the case of Sun Dawu. These have aroused widespread controversy in the country. For private lending, from the reality borrowings case, we find that the legal regulation is still many deficiencies. Private lending must be regulated, and the focus of regulation is that the regulation of private lending interest. What are the problems that Chinese private lending interest rates in the application of the law? How to solve it?Private lending is an important supplement to the regular borrowing of the banking system, which plays an important role in SME financial support.,However, there is not complete and detailed specifications for private lending in the Chinese legislation. These cases are in judicial practice in many specifications to the controversial use of specific cases. Many specifications has different results, so that it has different standards, The referee presents a challenge. This uncertainty for the sound development of China’s private lending turned out to be a big obstacle. Domestic judicial practice strict attitudes toward legal regulation of private lending interest rates, but the effect is not good, only for the case to be processed, no systems thinking deeper reason.Private lending interest rates have important practical significance. First of all, it has the significance of long-term development of SMEs. The bank is unable to provide adequate support, SMEs need financial support, and there is close contact between the financing of private lending and SMEs, part of the non-state interference range. So it must be effective solutions to SME immediate need. Secondly, the rational development of private lending is important. Effectively control the level of interest rates, not only to reduce the number of lawsuits, but also conducive to the parties Mediating contention. Finally, the state established a long-term multi-level lending market and social harmony has a greater significance. Reasonable development of private lending can make the different needs of different levels, different repayment ability of enterprises of all types to find the right lending. Extrusion usury, underground banks and suppression of high-risk speculation is also of great significance.This paper is based on a problem on private lending----the laws of the interest rate application as the core discussion. The first is the case of private lending and private lending interest for a simple discussion, followed by China’s current regulation of private lending interest rates to make a comb, and put forward the shortcomings. And then for one of the most central topic on the interest rates discusses the problems in the judicial application of disputes arising out of focus, including the discussion of the limits of the private lending interest rates which is above the legal interest in judicial practice;how to identify the interest above the law; the problem on the private lending compound interest; I hope to provide some foreign private lending interest rates as a reference, to be helpful for the future development of China’s private lending. The last part is to provide some reasonable suggestions and views for the future of private lending interest rate trends, as well as China’s private lending interest rates judicial perfect.