Research On Classified Regulation Of Private Lending Interest Rate

The object of this paper is the classification regulation of private lending interest rate.As the current regulation of private lending interest,the former "two lines and three zones" standard has some defects,such as lack of flexibility,insufficient deterrence to usury,and easy to be avoided.Now,the new "one line and two zones" standard changes the original fixed interest rate ceiling standard to floating interest rate ceiling standard,although it increases the adaptability of interest rate ceiling and reduces the cost of private lending However,when the legal interest rate cap is set at a high level,the problem of insufficient protection of borrowers still exists,and it fails to make a scientific and reasonable distinction according to the concept of civil and commercial distinction,which leads to the confusion of standards and the lack of rules in the relevant Adjudication Rules.In judicial practice,there are many doubts about the determination of the compound interest of private lending contract,the deduction of loan interest from the principal in advance,the chaos of usury,and the borrower’s willingness to pay interest.The interest rate of private lending is affected by opportunity cost,risk cost,transaction cost,capital supply and demand,etc.the setting of interest rate ceiling should consider multiple factors.If the upper limit of interest rate is lower than the actual market interest rate,the upper limit of interest rate will be in vain.In practice,the two sides of the loan will evade the interest rate regulation by means of black-and-white contract,not writing interest,pre deducting interest(beheading interest),false litigation and so on.If the law sets the upper limit but there is no legal accountability mechanism,the regulation of the upper limit of interest rate will be weakened,which will lead to regulation failure.Shake the country’s financial security and bring down industry.It is necessary to introduce the classification regulation mode of private lending interest rate.The event of private lending can be divided into a variety of elements,such as the parties to the loan,the specific use of funds,the market supply and demand situation when the loan fund contract is established,the reference standard of lending interest rate of formal financial institutions,the specificity and difference of regional and industrial,and so on.Different combinations of different factors will produce different "market prices",and therefore different interest rates.National laws and regulations should pay full attention to these differences when regulating private lending interest rates.Therefore,this paper takes the classification regulation of private lending interest rate as the research object,takes the regulation status of private lending interest rate as the logical starting point,and explores the classification regulation mode of private lending interest rate on the basis of respecting the freedom of contract and protecting the balance of interests between vulnerable borrowers,and puts forward some suggestions on the improvement of the classification regulation system of private lending interest rate in China.