For loans that are not protected by law, the borrower does not have to repay the loan

Mondo Social Updated on 2024-01-29

According to theProvisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending CasesA high-interest loan refers to an agreement between the borrower and the borrowerInterest ratesexceededAnnual interest rate24% of the time. In this case,LawsprovisionsLendersRequest the borrower to follow the agreementInterest ratesPaymentInteresttime, peopleCivil LawThe hospital should be supported;And the borrower can requestLendersReturn of the excess that has been paidAnnual interest rate36% partiallyInterest。This means that the borrower only needs to repay up to 36% of the borrowed amount.

For borrowing at high interest rates,LendersIt is often used to take advantage of the high demand for borrowing and set too highInterest ratesand thus make more profits. However,LawsReasonable is prescribedInterest ratesrange, and the part outside of this range is invalid. Such a provision protects the rights and interests of borrowers from being exorbitantInterestoppressed.

In real life, high-interest loans often occur in poor households or cannot be approvedBanksand other formal ways to borrow. They are often faced with urgent financial needs and have no choice but to borrow at high interest rates. However, the high stakesInterestThis makes it unbearable for borrowers and even deepens poverty. Therefore, relevantLawsThe implementation of the regulations is essential to protect the interests of the borrower.

InLoan contractsDuring the signing process, both the borrower and the borrower need to ensure that the true intention is expressed. If the borrower is under the influence of coercion, fraud, or other improper conduct that results in the conclusion of the contract against his true will, then:Loan contractsis invalid.

People's Republic of ChinaCivil LawThe Code provides that the coerced party has the right to request the annulment of a civil that is contrary to the true intentionLawsBehavior. Within one year, the coerced party may apply to a court or arbitration institution for revocationLoan contracts。This provision protects the legitimate rights and interests of the parties and ensures that they will not be forced to enter into a contract that is unfavorable to them under improper circumstancesLoan contracts

The principle of true expression of intent is also to protect the rights and interests of the borrower from being harmed without their knowledge or understanding of the contents of the contract. Therefore, in the signingLoan contracts, both parties shall ensure that the true intention is expressed and avoid being affected by coercion, fraud and other improper acts.

Borrowing money for illegal activities is another type of inaccessibilityLawsProtected forms of borrowing. According to theProvisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Casesin the following casesPrivate lendingThe contract was found to be invalid: arbitrage of credit funds and usurious relending to the borrower, illegal profit in the name of borrowing, borrowing for illegal and criminal activities, and violationSocialpublic order and morals and other violationsLawsand mandatory provisions on the validity of administrative regulations.

This provision is to crack down on illegal crimes and protectSocialorder and the tranquility of the people's life. IfLendersKnowing that the borrower is using the loan for illegal activities, but still takes the initiative to provide the loan, then such is the caseLoan contractsIt is considered to be contrary to public order and moralsLawswill not be protected.

In this case, the borrowing is violatedLawsdoes not meet the regulationsSocialEthical and moral standards. borrowers andLendersshould be consciously observedLawsregulations, do not participate in illegal activities, and jointly establish harmonySocialEnvironment.

StrengthenLawsIt is everyone's responsibility to be aware of and protect their own rights and interests. In the process of borrowing, understandLoan contractsof the terms to ensureInterest ratesWithin the limits of the law, avoidLoan sharkshappens. At the same time, the borrower should also carefully consider the purpose of the loan, and ensure that the purpose of the loan is legal and compliant, so as to avoid illegal activitiesLawsRisk. In the event of coercion or fraud, the borrower should seek it in a timely mannerLawsassistance to protect their own rights and interests.

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