Many people who want to take out a loan have a question: what is the normal APR for a loan? The answer to this question needs to be discussed in the following situations: If you choose to take out a private loan. The upper limit of judicial protection for the interest rate of private lending is 4 times the one-year loan market quotation rate (LPR), which means that the annual interest rate of loans for private lending is less than or equal to 4 times the one-year LPR is the normal interest rate. If the interest rate is higher than 4 times the one-year LPR, the borrower is not required to return the interest generated by the excess. Even if the lender sues the court and asks the borrower to pay interest according to the agreed interest rate, this is not in line with the legal requirements, and the people's court will not support it. If you choose a financial loan.
The annual interest rate of financial loans is less than or equal to 36% is a normal interest rate. When the loan interest rate agreed between the lender and the borrower does not exceed 24% per annum, the lender sues the court and asks the borrower to pay the interest at the agreed rate, which is by the legal requirements and the People's Court will choose to support it. If the annual interest rate of the loan is within the range of 24% to 36%, then it is in the natural debt area. If the lender sues the People's Court for protection of interest in this zone, the People's Court will not provide legal protection. In other words, if a user applies for a financial loan and the annual interest rate of the loan exceeds 24%, the user may not return the interest in excess. If the user returns the interest and later wants to get it back, the court will also reject the user's request. This is because the interest cannot be recovered based on the principle of voluntary payment by the user.
If the annual interest rate exceeds 36%, the interest on the loan is not valid, and the user can claim the interest back by filing a lawsuit, even if he or she paid it voluntarily. So what is the normal APR for online loans? Online lenders are usually licensed financial institutions, so their annual interest rates are considered normal for loans less than or equal to 36%. Only the part that exceeds 36% is an illegal interest rate. In reality, the APR of online loans is usually within 24%. Because the current year's interest rate is between 24% and 36%, this part of the interest rate falls within the natural debt area.
When the borrower does not return this portion of the interest, the lender cannot get it back by suing. Therefore, most online lenders will only set the interest rate on the loan up to and including 24% APR. When applying for a loan, users must check whether the loan interest rate is legal, and need to stop applying for that loan immediately once the interest rate is not legal. Of course, if the loan interest rate itself is legal, but in the process of repayment, many other fees are added, the user can also keep the relevant evidence and later complain or report to the relevant authorities.