Analysis of Compliance Issues Regarding the 24% Annualized Interest Rate of Kuaishou's Financial Business

Based on the latest regulatory policies and market data, I will systematically analyze the compliance issues regarding the 24% annualized interest rate of Kuaishou’s financial business.

After obtaining the online microloan license in April 2024, Kuaishou began to accelerate its layout of financial business. Currently, Kuaishou’s financial business mainly includes:

• Annualized interest rate range:
  6.1%-24%
• Positioned as “Kuaishou’s own lending platform”
• Maximum loan limit: 200,000 yuan

• Cooperates with third-party institutions such as 360 IOU, Paipai Loan, Haofenqi, and Xiaohui Pay
• Previously, the platform’s loan annualized interest rate range was
  7.2%-36%
• Currently, the page clearly states the loan interest rate range as
  6.1%-24% annualized

• Obtained online microloan license in March 2024
• Registered capital increased from 500 million yuan to
  1 billion yuan
  (December 2025)
• Holds payment license and insurance agency license

According to data from the Black Cat Complaint Platform, there have been more than 300 complaints related to “Kuaishou Borrow” since 2023, with the main issues including:

• Actual loan interest rate does not match the advertisement (users complain that the actual annual interest rate is as high as
  35.99%
  )
• Improper collection methods
• Excessively high interest rates

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According to the “Judicial Interpretation on Private Lending” revised by the Supreme People’s Court in August 2020:

Applicable Time	Interest Rate Protection Ceiling Standard
Before August 20, 2020	“Two Lines and Three Zones”: 24%-36%
After August 20, 2020	4x one-year LPR

• One-year LPR:
  3.0%
• 4x LPR ceiling:
  12.0%

At the end of 2024, the State Financial Regulatory Administration issued the “Guidelines for the Supervision and Administration of Microloan Companies”, which put forward clear requirements for the interest rates of the microloan industry:

Time Node	Requirements
Immediate Implementation	Immediately stop issuing new loans with comprehensive financing costs over 24%
Transition Period	By the end of 2026, the proportion of loans exceeding 4x LPR in the total loan amount will decrease significantly
Final Target	By the end of 2027 , the comprehensive financing cost of all new loans must be reduced to within 4x LPR

It should be noted that the “Reply on the Scope of Application of the New Judicial Interpretation on Private Lending” clearly stipulates:

Seven types of local financial organizations supervised by local financial regulatory authorities, such as

microloan companies

, are

not applicable

to the 4x LPR standard in the “Judicial Interpretation on Private Lending”

This means that in judicial practice:

• For microloan companies,
  some courts still apply the 24% judicial protection ceiling
• The Supreme People’s Court’s “Several Opinions on Further Strengthening Financial Trial Work” stipulates:
  The interest rate protection ceiling for financial loan contracts is 24%

---

Dimension	Analysis Conclusion
Judicial Practice	24% does not exceed the 24% judicial protection ceiling for financial loans, temporarily safe
Regulatory Requirements	24% exceeds the “over 24%” red line for immediate suspension of new loans (there is ambiguity about whether 24% itself falls into “over 24%”)
User Complaints	There are cases where the actual interest rate does not match the advertisement, high compliance risk

According to regulatory requirements,

, microloan companies must reduce the comprehensive financing cost of new loans to . This means:

1. The 24% interest rate ceiling must be significantly reduced within the next two years
2. The reduction幅度 is as high as 50%
   (from 24% to 12%)
3. Profit margins will be severely squeezed

Regulatory Requirements	Kuaishou’s Current Situation	Risk Level
Immediate suspension if over 24%	24% is at the critical point	🔴 High Risk
Reach the 12% target by 2027	Currently at 24%	🔴 High Risk

User complaints show:

• The loan interface is marked with “
  comprehensive annual interest rate (simple interest) starting from 23.98%
  ”
• The annual interest rate corresponding to the actual repayment plan is as high as
  35.99%

This discrepancy may involve:

• Violation of false advertising provisions in the “Advertising Law”
• Violation of the right to know protection in the “Consumer Rights Protection Law”
• Price compliance review by regulatory authorities

Compared with major competitors:

Platform	Interest Rate Level	Compliance Status
Ant Group (Jiebei)	7.2%-24%	Facing pressure to reduce rates
Douyin (Fangxin Loan)	7.2%-24%	Facing pressure to reduce rates
Kuaishou (Shengxin Loan)	6.1%-24%	Also facing pressure to reduce rates

---

1. Tight time window
   : Must reduce the interest rate to within 12% by the end of 2027, with less than two years of transition period

2. Immediate risks exist
   :
   • The 24% interest rate is on the edge of the regulatory red line
   • User complaints show that the actual implemented interest rate may exceed 24%
   • Discrepancies between advertisement and reality may attract regulatory attention

3. Profit model under pressure
   : A 50% reduction in interest rates will seriously affect the profitability of the microloan business

Phase	Expected Regulatory Focus
2025	Focus on inspecting products with rates above 24% and reducing the proportion of non-compliant loans
2026	Accelerate the achievement of the 4x LPR target and restrict cooperation with high-cost funds
2027	Fully implement the 12% ceiling and eliminate non-compliant institutions

1. Regulatory dynamics
   : Continuously pay attention to the specific identification standards of the State Financial Regulatory Administration for the 24% critical point
2. User complaints
   : Reduce consumer complaints related to interest rates to avoid regulatory penalties
3. Business adjustment
   : Plan low-interest rate product lines in advance to meet the full compliance requirements in 2027
4. Capital cost
   : Optimize funding sources to reduce costs against the background of narrowing interest spreads

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[1] Time Weekly - “Kuaishou Microloan increases capital to 1 billion! Multiple Internet companies increase investment in microloan this year, industry reshuffle intensifies” (https://finance.sina.com.cn/jjxw/2025-12-27/doc-inhefkhm1763301.shtml)

[2] 21st Century Business Herald - “4x LPR rate cut pressure accelerates the clearing of the microloan industry” (https://www.21jingji.com/article/20251226/4d48e4afea786498240f8d9b160e077f.html)

[3] People’s Daily Online - “December LPR quotation: 1-year 3.0% 5-year and above 3.5%” (http://finance.people.com.cn/n1/2025/1222/c1004-40629559.html)

[4] Tiantong Law Firm - “Analysis of the application of the judicial interpretation on private lending and the interest rate protection ceiling” (https://www.tiantonglaw.com/Content/2024/08-21/1118029089.html)

[5] NetEase Finance - “Kuaishou, a latecomer, invests another 500 million to increase its online loan business!” (https://www.163.com/dy/article/KHQ572D50519II4K.html)

[6] China News Service - “December LPR quotation released: 1-year is 3.0% and 5-year and above is 3.5%” (https://www.chinanews.com.cn/cj/2025/12-22/10537818.shtml)