Re: Setting an interest rate for a private loan

From: WDStancil <WDStancil@aol.com>
Subject: Re: Setting an interest rate for a private loan
Date: Thu, 7 May 1998 16:00:23 EDT

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>  [My mom] and my step-dad make "hard money" loans as a way to
>  supplement their retirement income.  Recently, a lawyer told them
>  that the written agreement they had with one of their
>  less-than-stable borrowers was illegal, since the agreed-upon
>  interest rate of 18% (for a private, unsecured personal note)
>  was usurious.

States usually set a maximum interest rate - which is why credit card
companies
move to states without usury laws. :)

What do local banks charge for overdraft loans?  Overdraft loans are
unsecured, and would seem to be a good guide as to what interest rate to
charge.  My bank (NC) charges 16.9% on overdraft loans.

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