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In the US an interest free loan can be considered income of the value of the interest, whether charged or not, depending upon who is making the loan. Check with an accountant to insure that it is okay otherwise you can have the IRS checking your tax returns.
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∙ 16y ago
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Can you make a personal loan without charging interest?
It's your money, you can pretty much do what you want with it (there are a few exceptions). But sure, you can make a personal loan and not charge interest.
How do these corner fincnce companies get away with charging consumers outrageous interest rates?
If people don't agree with the interest rate, they do not have to accept the loan.
What is low interest loan?
The loan whose interest rate is low is called low interest loan. If you got a unsecured loan @ low interest rate then it would be low interest loan for you.
How can you reduce interest on high interest loan?
Repay the loan with the funds raised from a lower interest loan.
Why is more interest paid at the beginning of a loan period than at the end of the loan period?
Charging interest is the method by which a lender profits from loaning money to a borrower. The lender will set the terms of any loan to their advantage. They obviously want to get paid first and get paid the most. The balance of a loan is typically higher at the beginning of a loan, and interest will be charged on the balance. So as a person makes payments on the loan typically he/she will be making a payment consisting of part interest and part principal. As the person pays down the loan the interest that is calculated at the compounding period will be less because the principal amount has been reduced. For example, a person has a $1000 payment, at the beginning of the loan the payment may be broken down as ($900 interest and $100 principal), on the last payment of the loan the payment of $1000 may look like ($950 principal and $50 interest).
How does charging interest encourhe banks to make loans?
It depends bank and which loan you take.
Can you make a personal loan without charging interest?
It's your money, you can pretty much do what you want with it (there are a few exceptions). But sure, you can make a personal loan and not charge interest.
How do these corner fincnce companies get away with charging consumers outrageous interest rates?
If people don't agree with the interest rate, they do not have to accept the loan.
Is interest a fixed cost?
No. Fixed costs are general business expenses, while interest is on a loan. A loan is not required to run a business; So I would think it wouldn't be.
What is the best company to get a construction mortgage loan from?
Citi Finacial is a pretty good one. Just keep an eye on the interest rates they are charging.
Will a loan amortization table work when you have an interest only loan?
Yes! Simply go to http://mortgagemavin.com/interest-only-loan/mortgage-amortization-calculator.aspx and type in the required data. You will need to have your loan amount, interest rate and how many months are left to pay your bill to calculate your monthly payments.
What is low interest loan?
The loan whose interest rate is low is called low interest loan. If you got a unsecured loan @ low interest rate then it would be low interest loan for you.
How do you use usury in a sentence?
Money lenders found guilty of usury have wrongfully engaged in the practice of charging a high or unlawful rate of interest on a loan.
Where can one find an EMI calculator to assist in determining the payments required for a car loan?
An EMI calculator for determining payments required for a car loan can be found at the official infibeam website. They offer features such as loan terms, annual interest rates and the loan amount.
How can you reduce interest on high interest loan?
Repay the loan with the funds raised from a lower interest loan.
Why is more interest paid at the beginning of a loan period than at the end of the loan period?
Charging interest is the method by which a lender profits from loaning money to a borrower. The lender will set the terms of any loan to their advantage. They obviously want to get paid first and get paid the most. The balance of a loan is typically higher at the beginning of a loan, and interest will be charged on the balance. So as a person makes payments on the loan typically he/she will be making a payment consisting of part interest and part principal. As the person pays down the loan the interest that is calculated at the compounding period will be less because the principal amount has been reduced. For example, a person has a $1000 payment, at the beginning of the loan the payment may be broken down as ($900 interest and $100 principal), on the last payment of the loan the payment of $1000 may look like ($950 principal and $50 interest).
How does an unsecured personal loan work?
Basically an unsecured personal loan means that you are not putting up any collateral such as a car or home. Therefore, lenders are more apt to charging a higher interest rate or require a higher credit score in order to qualify for a loan.
