Research On The Legal Regulation Of Private Lending Rate In China

With the rapid development of China’s economy,private enterprises have developed rapidly,especially with the policy guiding funds out of the real world,encouraging mass entrepreneurship,and entrepreneurship.Small and micro enterprises are springing up,promoting,promoting employment and stimulating the economy.Growth and promotion of urbanization play an irreplaceable role.However,“funding difficulties” has always been a bottleneck that has plagued the development of small and micro enterprises.The reason is that small and micro enterprises have low bank credit availability and low credit accessibility.Their existing funds are not enough to support the healthy development of enterprises.Private lending has gained huge development space and become a useful supplement to formal finance.On the other hand,the scattered distribution of private lending laws and regulations makes it difficult to guide and regulate private lending;the lag of law is not enough to cope with the new features and new problems exposed in the development of private lending;Strong policy orientation makes it difficult to provide stable institutional support for private lending.Therefore,It is particularly important to improve the relevant legislation on private lending in China.Interest rate is the core of private lending.In 2015,the judicial interpretation introduced the “two lines and three districts” regulations.It is also a “one size fits all” application for all interest rates on private lending,and there is no distinction between living lending and productive lending.Life borrowing mostly occurs between natural persons and belongs to civil lending.The diversity of productive lending participation in the main body is based on the operation or investment profit.It has become a useful supplement to formal finance and is a commercial lending.Therefore,it is necessary to Treat them differently.Regarding the calculation of interest rates and the problem of usury,disputes in judicial practice have been controversial.For example: interest,compound interest,overdue interest and how liquidated damages are used together,the application of compound interest,the issue of pre-deducting the principal of private lending,the relevant usury provisions and applicable issues.Although the existing norms in China have the provisions of the usury problem,but lack of strict identification standards and punishment mechanisms,it is difficult to form an effective deterrent to the usurers.Therefore,it is necessary to set up the usury recognition standard and the punishment mechanism.This paper combines the actual situation of China’s private lending interest rate market development,and draws on the better practices of developed countries outside the country to explore whether the "one size fits all" regulatory model has its irrationality.Through a comprehensive analysis of the current laws and regulations,revealing the problems in the implementation process,explore the feasible path of private lending interest rate law governance,and contribute to the modernization,standardization and scientific and healthy development of private lending rates.