BEIJING - The judicial protection ceiling on private lending interest rates should be set at four times China's one-year loan prime rate (LPR), according to a revised regulation made public on Thursday by the Supreme People's Court (SPC).

The new ceiling on private lending interest rates is 15.4 percent based on the latest one-year LPR, which came in at 3.85 percent on Thursday. In the past, the ceiling was between 24 percent and 36 percent.

A significant reduction of the ceiling will promote health and stable development of internet finance and private lending, said He Xiaorong, a senior official with the SPC, adding that the move also provides more specific criteria for handling private lending disputes.

The National Interbank Funding Center will calculate and release the LPR on the 20th day of every month, or the next working day. Currently, the LPR consists of rates with two maturities, ie, one year and over five years.