Hysome Cases | Private loan dispute between a technology company in Beijing and Zhang Kun

A technology company in Beijing loaned RMB 15,000 yuan from client Zhang Kun and did not agree on a loan period. The client later sued the technology company with the court to return the loan and overdue interest. The technology company approved the ruling made by the court of first instance that it shall repay the principal amount of the loan to Zhang Kun, and appealed and claimed that no due interest shall be paid.

The focus of the dispute in this case is whether the technology company in Beijing shall pay overdue interest to the client Zhang Kun.

After a trial, the Beijing No. 1 Intermediate People's Court found that Zhang Kun had a loan relationship with the technology company. The parties had not agreed on the loan period. Zhang Kun can request the technology company to repay the loan at any time, but it should give the technology company the necessary preparation time, and approved that the court of first instance took the date when Zhang Kun submitted the lawsuit, that is, April 24, 2018, as the date the loan period expires. According to judicial interpretations related to private lending, the lender can claim that if the  borrower and lender had not agreed on the interest rate within the borrowing period or the overdue interest rate, the lender may claim that the borrower shall pay interest at the rate of 6% per annum for the period of occupying the funds from the date of overdue repayment. The court rejected the appeal of the technology company in Beijing on the grounds that Zhang Kun only insisted that the technology company pay interest according to the interest rate standard for loans of the People's Bank of China for the same period, and did not exceed the rules on interest rate standards in the above judicial interpretation, and upheld the ruling made in the first instance.

After accepting the client's entrustment, Ms. Yuan Quan and Ms. Guo Na of our firm collected evidence of the loan relationship between the plaintiff and the defendants and searched the relevant legal basis to help the plaintiff obtain a successful judgment in the first and second instances, and recover the loan and overdue interest due from the plaintiff.