[Direct answer]In the Beijing area, if there is no interest stipulation in the IOU, there are two scenarios regarding whether interest can be claimed. - **Interest during the loan period**: If there is no interest stipulation in the loan contract between natural persons, it is deemed as no interest according to Article 680 of the Civil Code of the People's Republic of China. If the lender claims interest during the loan period, the people's court will not support it. If the interest stipulation is unclear and the loan is between natural persons, it is also deemed as interest-free. - **Interest during the overdue period**: If the borrower fails to repay on time, the lender can claim overdue interest. According to Article 28 of the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Private Lending Cases" (amended on December 23, 2020 and implemented on January 1, 2021), if there is no stipulation for interest during the loan period or overdue interest, it can be calculated by referring to the one-year loan market quotation rate (LPR) at that time. Therefore, not writing interest does not mean that you can't get any interest at all. The key is to distinguish between "during the loan period" and "during the overdue period", and to retain evidence of collection and maturity. For related collection and enforcement matters, please refer to the relevant provisions.Creditor-debtor relations and enforcement case services.

1. Problem background and typical scenarios

When relatives or friends borrow money from each other out of courtesy, they often don't write down the interest rate. If the lender wants to collect the interest later, there's no basis for doing so, which is one of the most frequent disputes in private lending. Typical scenarios include: the IOU only states "I borrowed X yuan today" without mentioning the interest rate. After the due date, the lender demands to make up for the interest according to the bank interest rate; the borrower denies it even though he/she verbally said "give some interest" but didn't write it into the IOU; the agreement states "return the principal and interest when it's due" but doesn't specify the interest rate, making it hard to calculate the amount. The key to resolving such disputes lies in whether there's a written interest agreement and whether the payment is actually overdue. For cases involving funds used for the operation and working capital of the enterprise, it can be combined with other relevant evidence to determine the outcome of the dispute.Business and contract dispute resolution services for enterprisesDetermine the nature of the funds.

II. Key points of contention

The controversy focuses on three points. First, whether the loan is between natural persons: if there is no agreement between natural persons, it is considered interest-free; if the agreement between non-natural persons (such as enterprises and individuals) is unclear, the court can determine it based on the transaction method, customs, and market interest rates. Second, whether the interest is "not written" or "agreement unclear": if it is completely unwritten, the legal consequences are different from those where the amount is unclear. Third, the boundary between the loan period and the overdue period: if the interest is not written, it only affects the loan period and does not affect the claim for overdue interest. Many lenders mistakenly believe that "borrowing money should pay interest", but the law clearly protects interest-free loans between natural persons. Before making a claim, it is necessary to clarify the nature of the loan. For cross-marital family claims, reference can be made to the relevant provisions.Divorce litigation and family dispute resolution services.

III. Professional analysis by Henglue Lawyers

Based on our practical observations in handling similar private lending cases, the most common pitfall in interest-free disputes is "confusing the period during which the loan is repaid with the overdue period". Many lenders, out of face, do not write down the interest rate in the promissory note stage, but later want to recover the interest during the loan period after the overdue date. As a result, they are rejected because there is no agreement; what they can really claim is the cost of capital occupation after the overdue date. Henglue Lawyers usually suggest: when the loan occurs, write the interest rate and the starting date into the promissory note to avoid difficulties in providing evidence later; if it has been omitted, accurately distinguish "no interest during the loan period and claiming interest according to the LPR after the overdue date" in the collection notice and the lawsuit, and exercise rights within the statute of limitations. For non-natural person loans with unclear agreements but not completely lacking agreements, collect transactional habits and similar contracts to corroborate the interest rate expectations. The organization of evidence in such cases directly determines the scope of recoverable funds. It is recommended to consult professional lawyers as soon as possible to avoid missing the statutory time limit. For cases involving subsequent enforcement, it can be connected up.Special services and other case services.

IV. Practical suggestions and legal basis

Core basis: Article 679 of the Civil Code (effective January 1, 2021) (A natural person's loan contract is concluded upon the provision of the loan); Article 680 (If no interest is stipulated, it is deemed interest-free, and usury lending is prohibited); Article 24 of the Supreme People's Court's Interpretation on the Application of Law in the Trials of Private Lending Cases (amended on December 23, 2020 and effective January 1, 2021) (no interest is supported during the loan period if no interest is stipulated); Article 28 (the overdue interest rate refers to the LPR). Practical suggestions: Write the interest rate and the starting date into the promissory note before lending; promptly send written reminders and keep the relevant evidence after the overdue period; separately list the claims for interest-free during the loan period and overdue interest when suing; pay attention to the three-year statute of limitations, and the reminder can interrupt the statute of limitations. For large-scale or cross-year loans, it can be combined with other legal provisions.Real estate sales and construction project servicesCheck whether there is any guaranteed property.

5. Henglu Law Firm's Reminder

A promissory note that does not specify interest is not a "free loan", but rather a loan with no interest during the repayment period. If the borrower fails to repay on time, the lender can still claim compensation for the cost of funds being occupied. The key to protecting one's rights lies in clarifying the nature of the loan, fixing the due date and collecting evidence of the debtor's failure to repay, and taking action within the statute of limitations. It is recommended that in the future, lenders must specify the interest rate and repayment period in the written document, and promptly supplement or preserve evidence if there are omissions in the existing promissory notes. For more recovery methods, please refer to the relevant materials.Creditor-debtor relations and enforcement case services.

VI. Frequently Asked Questions

Q1: There's no mention of interest in the IOU at all. Can I still demand interest?

During the loan period, you cannot demand interest. However, if the loan exceeds the due date, you can demand interest. According to Article 680 of the Civil Code, if there is no agreement on interest between natural persons, it is deemed that there is no interest. If you sue for interest during the loan period, the court will not support it. However, if the borrower fails to repay the loan on time, it constitutes a default. You can claim default interest according to Article 28 of the Judicial Interpretation on Private Lending, calculated based on the one-year LPR at that time. If both parties to the loan are not natural persons and the interest agreement is unclear, the court will determine it based on transaction practices and market interest rates, rather than assuming that there is no interest. Therefore, "no written interest" does not equal "no interest at all". It is necessary to fix the evidence of the due date as soon as possible, and to explicitly claim default interest during the collection process to avoid giving up the benefits of default interest. For verbal interest promises that are difficult to prove due to the lack of written evidence, it is recommended to sign a supplementary agreement or keep chat records.

Q2: To claim overdue interest, what evidence do I need to prepare?

Organize evidence around the four key elements of "loan establishment, maturity, overdue payment, and debt collection". First, the loan relationship: confirm the content of the loan in the IOU, transfer receipts, receipts, and chat records; Second, the maturity date: the repayment period specified in the IOU, or the date when you first urge the borrower to repay if no repayment period is specified; Third, the fact of overdue payment: communication records showing that the borrower failed to repay after the repayment period expired; Fourth, debt collection and interest rate basis: collection notices, written or audio evidence claiming overdue interest, and explanations claiming to calculate interest based on the one-year LPR. The court may refer to the LPR standard ex officio, but making a clear claim can reduce disputes. The more complete the evidence is, the clearer it is when the overdue interest starts to accrue and according to what standard it is calculated, and the more guaranteed the recovery of the loan will be.

Q3: How much is the overdue interest usually calculated to be?

If there is no agreement on the interest rate during the loan period and the overdue interest rate, according to Article 28 of the Judicial Interpretation of Private Lending, the lender may claim that the borrower shall pay interest during the period of funds occupation from the date of overdue repayment, referring to the one-year loan market reference interest rate (LPR) at that time. Taking a one-year overdue loan of 1 million yuan as an example, according to the one-year LPR of about 3.45%, the overdue interest would be about 34,500 yuan; the principal and the overdue duration would be proportionally calculated. If the promissory note stipulates the interest rate during the loan period but does not stipulate the overdue interest rate, the lender may claim the overdue interest according to the interest rate during the loan period, but the amount shall not exceed the upper limit of four times the one-year LPR at the time of the contract's establishment. It should be noted that the overdue interest does not depend on whether the interest rate is written or not. As long as the loan is not repaid on time, the overdue interest shall be calculated from the date of overdue repayment, and the amount shall be accumulated with the principal and the number of days.

Q4: For a promissory note without an interest rate stipulation, what is the statute of limitations for litigation?

The claim for repayment is subject to the three-year general statute of limitations, according to Article 188 of the Civil Code (effective January 1, 2021). The statute of limitations begins to run from the date when the right holder knows or should have known that their rights have been infringed and the obligee's identity has been identified. If the promissory note stipulates a repayment deadline, the statute of limitations begins to run from the date the deadline expires; if no repayment deadline is stipulated, the lender may demand repayment at any time, and the statute of limitations begins to run from the date the lender issues a reminder and grants a reasonable period for repayment. Collection efforts, lawsuits, and the debtor's agreement to perform the obligation may interrupt the statute of limitations and restart the calculation. The absence of interest does not affect the application of the statute of limitations. Many lenders fail to win the case because the statute of limitations expires due to long-term non-collection efforts, and the debtor raises defenses. It is recommended that after the loan maturity, the lender regularly send written reminders and keep the relevant evidence, and if necessary, file a lawsuit for performance to interrupt the statute of limitations.

Q5: The promissory note doesn't mention the interest rate. How should I remedy the situation now?

Three steps. First, supplementary signing or leaving a record: negotiate with the borrower to sign an interest supplementary agreement, or explicitly state in WeChat or text messages that "interest will be calculated according to the LPR rate for overdue payments", to fix their acknowledgment record. Second, written collection: send a collection notice stating the principal, due date, and claim for overdue interest, and retain the delivery certificate to interrupt the statute of limitations. Third, litigation as a backup: if no agreement is reached, sue within the three-year statute of limitations to request the return of the principal and payment of overdue interest from the date of overdue payment. If the borrower is uncontactable, a default judgment can be issued after the announcement of service. The key action is to "act as soon as possible" — both to prevent the statute of limitations from expiring and to prevent the other party from transferring assets. When the evidence is complex, it is recommended to entrust a professional lawyer to draft the collection notice and lawsuit to enhance the certainty of recovering the payment.

The above answer is based on the judicial practice in Beijing. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.