legal ground
According to the provisions of the General Rules for Loans, only financial institutions approved by the the State Council Banking Regulatory Authority can engage in loan business. However, if individuals borrow money from college students, it is a private lending behavior. As long as college students have full capacity for civil conduct, it is legal. However, if the loan interest rate exceeds the annual interest rate of 36%, it belongs to usury and is not protected by law.
According to the Notice on Further Strengthening the Standardized Management of Campus Loans, all online lending platforms are prohibited from issuing loans to college students. If loans are issued, it is illegal and not protected by law. Whether it is illegal for individuals to lend money to college students involves many legal issues. If it is private lending, if the loan interest rate exceeds the legal provisions, it is usury and illegal. If it is a campus loan, it is also illegal.
Campus loan: refers to the behavior of students borrowing from various lending platforms. The Ministry of Education, the China Banking Regulatory Commission and the Ministry of Human Resources jointly issued a document to standardize campus loan management, explicitly prohibiting campus loan business, and no online lending institution may issue loans to college students.
Remember, no matter what daily interest, weekly interest and monthly interest are agreed with illegal campus loans. As long as the interest standard exceeds the annual interest rate of 24%, the monthly interest rate of 2%, the weekly interest rate of 0.46% and the daily interest rate of 0.065%, even if the lender sues you, the court will not allow you to repay the excess interest.
According to the calculation in the preceding paragraph, the sum of the principal and interest payable by the borrower after the expiration of the loan term cannot exceed the sum of the initial loan principal and the interest of the whole loan term calculated at the annual interest rate of 24% based on the initial loan principal. If the lender requests the borrower to pay the excess, the people's court will not support it. College students should bear in mind that "the people's court will not support the lender to ask the borrower to pay the excess."