Can the money not be repaid?
6 types of borrowing, it is really possible to "only borrow but not repay"
Since ancient times, we have always adhered to the principle of "borrowing money to repay money".
After all, money owed to someone always has to be repaid.
However, the new regulations introduced by the state in 2022 have shown us new possibilities.
Yes, you heard it right, in certain cases, you may not have to pay back the money you borrowed.
Want to know what's going on?
Read the content carefully
Based on the People's Bank of China's one-year loan market quotation rate (LPR) of 3.65% on December 20, 2022, the upper limit of the interest rate for private judicial protection required by the new Provisions is 14.6%.
This new rate represents a 9.4 per cent reduction from the previous 24 per cent and a 21.4 per cent reduction from the previous 36 per cent before the amendment.
So, did you know? After the promulgation of the Civil Code, the part of the interest rate exceeding 14.6% does not have to be repaid.
In other words, if you borrow money at an interest rate of more than 14.6%, you don't have to pay any extra interest.
It's like you go grocery shopping, and more than 14.6% of the price is like you bought expensive, and you can ask for a refund.
According to Article 175 of the Criminal Law of the People's Republic of China, the crime of usury on-lending refers to the act of taking credit funds from financial institutions and then lending them to others at usurious interest for the purpose of on-lending for profit, resulting in a relatively large amount of illegal gains.
This kind of behavior has seriously undermined the mainland's financial order and is very harmful, so it is expressly forbidden.
Therefore, if the annual interest rate of the loan is higher than the market prime interest rate for the one-year term of the loan, the excess amount can be repaid.
The inability to repay the loan due to force majeure factors such as natural disasters and wars is a situation that cannot be avoided and predicted.
In real life, these factors can cause the borrower to be unable to repay on time and may even cause the borrower to lose the ability to repay. Therefore, these factors should be considered as a force majeure factor and serve as a reasonable reason for the borrower's inability to repay.
In this case, the borrower should contact the bank or lending institution in a timely manner and provide relevant supporting materials, such as reports of disasters or wars, proof of disaster damage, etc.
The bank or lending institution will make reasonable adjustments to the borrower's repayment plan according to the specific situation to reduce the burden on the borrower. At the same time, borrowers should also take active measures to minimize their losses as much as possible, such as purchasing insurance and stocking up on daily necessities.
In the loan contract, if there is fraud, coercion, etc., then the contract cannot be regarded as the true intention of the borrower. These unfair tactics may mislead or coerce borrowers into entering into contracts, resulting in them not being able to freely express their will.
Therefore, if these conditions exist in the loan contract, the contract may be considered invalid or voidable.
Specifically, if there is fraud in the loan contract, then the contract may be considered invalid. For example, if the borrower conceals the issue of its ability to repay from the creditor at the time of entering into the contract, the contract may be deemed invalid due to fraud.
In addition, if there is coercion in the loan contract, then the contract may also be considered invalid. For example, if the creditor enters into a contract that threatens the borrower with violence if he does not do what he asks him to do, then the contract may be considered invalid as a result of duress.
In short, if there is fraud, coercion, etc. in the loan contract, then the contract cannot be regarded as the true intention of the borrower.
Therefore, when signing a contract, all parties should maintain the principles of good faith, voluntariness and fairness to ensure the legality and validity of the contract.
If the loan has exceeded the statute of limitations period prescribed by law, then the borrower does not have to pay it back, which is undoubtedly a legal strategy.
However, although some loans have exceeded the statute of limitations, the borrower still needs to bear certain legal liabilities. For example, in some countries or regions, borrowers may be required to pay certain fines or compensation.
Therefore, borrowers should carefully understand the legal provisions of the country and region where they are located, consult with local legal professionals in a timely manner, and understand their rights and obligations, so as to better formulate a repayment plan and avoid unnecessary legal risks.
Article 11 of the Several Opinions of the Supreme People's Court on the Trial of Lending Cases by the People's Courts clearly stipulates that "if the lender clearly knows that the borrower is borrowing money for the purpose of carrying out illegal activities, the lending relationship shall not be protected." ”
This means that gambling is strictly prohibited by national law, and the related gambling debts will not be protected by law.
The Civil Code is a law that clearly divides some loans, which builds a line of defense for the people, so that they will no longer be deceived by various "routine loans" and better protect their legitimate rights and interests. Its introduction is like a bright beacon, illuminating the way of the financial market and making our lives safer and more orderly.
Borrowing is risky,
Do it and cherish it.