China’s Supreme Court says the legal interest rate ceiling on private loans will be slashed to reduce financing costs. Photo: Reuters
China’s Supreme Court says the legal interest rate ceiling on private loans will be slashed to reduce financing costs. Photo: Reuters

China to slash private lending rate cap from 24 per cent in effort to tackle ‘usurious loans’

  • China’s Supreme Court and top economic planning agency say the interest rate ceiling protected by law will be slashed to crack down on ‘usurious loans’
  • The new ruling could deal a heavy blow to China’s private lending market, analysts say, and may not have the desired result in reduced costs for small businesses

China’s Supreme Court says the legal interest rate ceiling on private loans will be slashed to reduce financing costs. Photo: Reuters
China’s Supreme Court says the legal interest rate ceiling on private loans will be slashed to reduce financing costs. Photo: Reuters
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