Why the state requires annualized returns not to exceed 36

The state stipulates that the annualized interest rate cannot exceed 36%, and the part that exceeds it belongs to the invalid part. Which is within 24% (including) belongs to the judicial protection zone, 24%-36% of this interval belongs to the natural debt zone. With an interest rate of 24% or less, the borrower will sue the court and the court will give legal protection. While the interest rate of 24%-36%, the court does not provide any legal protection.

Thus, users applying for a loan, to determine whether it is legal or not, depends on the loan interest rate has not exceeded 36%. If the borrower and lender agree on an interest rate of more than 36% per annum, the interest agreement on the exceeding part is invalid, then, when part of the online loan interest rate of 35% per annum, then whether this loan is a high-interest rate loan?

In fact, in the P2P lending industry, part of the loan interest rate is often infinitely close to usury, but can not be defined in accordance with usury, because as long as when the borrower and lender agreed to the loan interest rate of more than 36% per annum, the loan will be called usury, on the other hand, if part of the network loan interest rate is lower than 36% per annum or 35%, it can only show that the loan interest rate of this network loan is a bit If some of the online loans have an APR of less than 36% or 35%, it only means that the interest rate of the loan is a bit high and belongs to the high-interest loans, but it can't be called usury.

Of course, when the borrower and lender of the loan interest rate of more than 24% per annum but less than 36% when the law does not support, do not protect, because of the agreement of the loan interest rate of 24% -36% of the interval belongs to the natural debt area, if the agreement has been paid for the return of the request will not be supported. And not yet paid, the court will not support. In fact, for some of the phenomenon of 35% annual interest rate for online loans, in some online lending institutions more prominent, because the loan interest rate is a natural debt area and there is a special drilling the possibility of legal loopholes, unless the borrower to go through the legal process to protect the rights and interests of the borrower may still have to bear the loan of such a high rate of interest, there is no doubt that, if when the borrower borrowed a $1,000 online loan, then the loan interest rate of 35% per annum, which means that after one year the borrower will need to pay back the loan. Means that after one year the borrower needs to pay back the principal and interest totaling ***1350 dollars, and also includes other comprehensive fees