China's top court has modified rules governing legally recognized interest rates on private loans following a spike in lending disputes between individuals and companies over the past four years, court officials said on Thursday.

Under the ruling from the Supreme People's Court, Chinese courts will provide legal protection for individuals and companies providing loans at an annual interest rate of 24 percent or less.

Repayments on loans with interest rates of between 24 percent and the 36 percent ceiling will only be protected by law up to an annual rate of 24 percent.