"An interest rate of more than 25 percent should be considered as loan sharking. That is the practice of loaning out money, just to charge a lot to get it back."
For California the usury limit for personal loans is 10%.. and anything greater should only be verbal as not to get caught up, but if it is in writing then it would be against the law and considered loan sharking.
Loan sharking is a serious problem in the Philippines. Many people are very poor and are simply unable to pay back the high interest loans made by unscrupulous people.
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.
No. Deductible interest includes student loan, investment, and qualified residence interest. Payday loan interest is considered personal interest. Personal interest isn't deductible.
You can find out if a low interest loan is right for you by considering your situation. Do you have the money for a significant down payment that will reduce the interest on your overall loan? Where do you plan to be in five years? All things must be considered in this context.
how would a balloon payment effect interest on a loan
As long as the loan account is under standard category, the interest on such loan is treated as income, as the sub standard loan accounts does not earn interest and hence, the interest on such loans can not be considered as income
The interest of a loan can be calculated by using the 'Loan Calculator' facility at the Bankrate website. One would need to know details, such as the interest rate and the loan term.
The interest rate on a student loan depends on the year it was established, the type of loan, and the habits of the student paying back the loan. Generally, 6.9% is considered to be in the high range, but lagging behind payments can increase the loan amount up to 14.0+%.
An inexpensive loan is one with a 0.12 percent interest rate. A medium price loan would be about a 6.5 percent interest rate. Lastly, an expensive loan would be one with an interest rate of 15 percent or more.
A loan from a family member is considered taxable income. The borrower can deduct a certain amount of the interest paid. The lender will have to pay taxes on any interest earned.
It depends on how long you need the loan for and how long it would take for you to complete the payment. But in general a low interest long term loan means a higher interest payment over the life of the loan where as a high interest short term loan means less amount of interest payment over the life of the loan.
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.
In general the interest rates for a personal loan would be higher than for a business loan. The risk of losing money with business loan is not as high as with personal loan.
No. You are considered the primary debtor and therefore the interest rate would depend on your credit history.
Loans are not usually considered income for tax purposes. Added: UNLESS you, the lender, are earning interest on the loan. Then - the interest income is taxable.
On the FAFSA
This would depend on the company from which you received the loan.
Repay the loan with the funds raised from a lower interest loan.
The prescribed interest rate is set every quarter based on the federal interest rate. A prescribed loan would be the one that would carry the prescribed federal interest rate. The person applying for the loan could have the attribution rules waived.
You would need to contact various banks and credit unions in your area to see what type of loan and at rate you could qualify for. Your credit and financial history would be considered to find out the loan amount and interest rate.
If banks had less money to loan they would increase their interest rates. This is because they would have to make the most profit off of the little money that they had to use. When banks have a lot of money to loan, interest rates are lower because they can still get a lot of interest even from the lower interest rates.
A student loan consolidation interest rate determines the amount of your monthly payment on your student loan. Higher interest rates would result in higher monthly payments.