Is quick loan illegal?

The interest rate of P2P is mostly 12%, and some even reach more than 20%, which is much higher than the income of bank wealth management products and Internet babies. First of all, we must understand that online lending is originally a part of the lending industry, and online lending is a soil opened up between bank lending and private usury. Compared with the high interest paid by borrowers in private lending, the annualized rate of return given by many P2P companies is not outrageous. Compared with high-interest private lending, the annualized rate of return of 8%~ 13% is considered as the normal lending rate. Another reason is that the threshold for P2P online loan application is low, the threshold for traditional bank loans is too high, and the information review is very strict. P2P online lending is a pure online auditing mechanism, with low threshold, convenience and rapidity. The high interest rate is set by the agreement between the two parties to the transaction, and the role of the platform is to balance the transaction and maximize the efficiency of resources. In addition, different borrowing periods of borrowers will also affect the income of P2P online loans. If the loan amount is relatively large and the time period is relatively short, then the interest rate is relatively low, while the interest rate with a long period is relatively high. As investors, we need a more rational analysis. High interest rate of P2P platform is not necessarily unsafe, and low interest rate of P2P platform is not necessarily safe. Under the premise that the current industry is regulated by the market, the high interest rate is within the scope stipulated by the state, which is less than 4 times of the bank interest rate in the same period. At present, the contract of annualized income 13% is protected by law, but investors can find paradise as long as they find a suitable P2P online lending platform.