Can you charge 50% interest for a personal loan?

Answer 1

No it is against the law, it is called usurer.

Answer 2

over what time period?

As an annual interest rate or for a short term loan, nope. They call that usuary.

However, over a longer period of time, even modest interest rates can definitely result in a total interest paid that is that high or higher.

Take a look at a home mortgage? Over 30 years you will pay far more than double the original purchase price!

The banks and other lenders have gotten sneaky though. They offer legal interest rates, but jack'em up to the high 20's if you're late AND can add up to $35 a mo to EACH late fees and over limit fees. On a smaller balance, this can very, very quickly double or triple what you originally owed.

So....the answer is well...its all in how you structure the loan terms.

Answer 3

you can charge whatever you want as long as you are upfront with cost. Loansharks make a 100% interest loans payable in 48 hours! Credit card companies up interest rates to 30% or more without even telling you.

Answer 4

No one ever charges 50% on anty loan. You will get hammered if you except a loan on that percentage.

Answer 5

Hopefully you are talking yearly and not monthly. That would be called "loan sharking".

That amount is pretty steep, but it depends on your credit rating. I certainly would not take a load out at that amount.

-Dio

Answer 6

No. That would be called usury which is lending money for an exorbitant amount of interest. As far as I know, it isn't legal.

Answer 7

Yes you can. But get it in writing signed by both parties.

Answer 8

If you ask me nicely.