Core Viewpoint - The court ruled that in the absence of a repayment order in a private lending agreement, repayments are considered as interest first, followed by principal repayment, based on the provisions of the Civil Code of the People's Republic of China [4][8]. Group 1: Case Summary - Zhang Si borrowed 139,300 yuan from Yang Jin in April 2022, promising to repay by July 22, 2022, but failed to do so [2][3]. - Zhang Si made a partial repayment of 10,000 yuan in September 2022, leading to a dispute over whether this amount was considered principal or interest [3][4]. - The court found that since there was no agreed repayment order, the 10,000 yuan was classified as interest, and Zhang Si was ordered to repay the full principal amount along with the remaining interest [4][5]. Group 2: Legal Framework - The Civil Code of the People's Republic of China, Article 561, stipulates that in the absence of an agreement, repayments should be made in the order of related costs, interest, and then principal [5][8]. - This legal framework is designed to protect the interests of creditors by ensuring that interest, as the expected return on investment, is prioritized in repayment [8]. Group 3: Recommendations for Borrowers and Lenders - It is crucial for both parties to clearly specify the interest rate in any lending agreement to avoid disputes [9]. - Detailed documentation of the loan agreement, including all relevant terms and conditions, is essential to prevent legal complications [9]. - Retaining evidence such as transaction records and communication logs is advisable for both parties in case of future disputes [9].