What Does "Going Rate" Mean?

Interest rate of private lending (interest rate of private lending). The interest rate of private lending refers to the interest rate of loans between individual residents and enterprises and residents.

Private lending rates

The characteristics of private borrowing interest rates are that when funds are scarce, interest rates increase, and when demand is weak, interest rates fall. Interest rates are fully regulated by the market.

(A) similarities and differences between the two interest rates

There are mainly two types of current interest rates in China: one is the national planned interest rate (including policy

"contract law"

Article 211 :

First, private lending can be paid (interest-bearing) or unpaid (interest-free). Whether to pay (interest-bearing) or not is determined by both parties. Therefore, private loans can be negotiated for interest.

Secondly, according to Article 211, Paragraph 1, of the "Contract Law" stipulates that "if a loan contract between natural persons has no agreement on the payment of interest or the agreement is not clear, it shall be deemed not to pay interest." Or it is agreed in the oral agreement that interest-bearing borrowing can require the borrower to pay the interest when the principal is repaid; otherwise, it will be deemed as interest-free borrowing and the lender shall not require the borrower to pay interest.

Furthermore, according to Article 211, Paragraph 2 of the Contract Law, "if the interest contract stipulates that interest payments shall be made in a loan contract between natural persons, the interest rate on the loan shall not violate the state's regulations on limiting interest rates on borrowing" and the provisions of the "Several Opinions" "The interest rate of private lending can be appropriately higher than the bank's interest rate, but it can't exceed four times the interest rate of similar loans from banks." ^[3]