Posted on: 13th Nov, 2013 01:23 pm
I have a outstanding loan owed to me and would like to know what this means " "Interest shall accrue upon any unpaid amount at the rate of eighteen percent (18%) allowed by law."
I need clarification of 18%, is that over 1 year or monthly on balance due?
Your help would be greatly appreciated.
Thank you
Karen Felkins
I need clarification of 18%, is that over 1 year or monthly on balance due?
Your help would be greatly appreciated.
Thank you
Karen Felkins
Hi KFelkins!
Welcome to the forums!
As far as I can understand, the interest will be accrued monthly. Nevertheless, you should speak to your lender and he will be able to clarify the whole matter.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
As far as I can understand, the interest will be accrued monthly. Nevertheless, you should speak to your lender and he will be able to clarify the whole matter.
Feel free to ask if you've further queries.
Sussane
Hi Sussane;
Thanks for the reply.
I am the lender. Do you happen to know the answers to my interest questions?
Karen
Thanks for the reply.
I am the lender. Do you happen to know the answers to my interest questions?
Karen
You have a loan owed "TO YOU" and you do not know the terms under which you gave the loan to someone?
Rates are usually quoted as annual rates, although, any contract could state whatever terms everyone agrees upon, within the limits of the law.
If the 18% is "allowed by law", that would imply that is the maximum rate allowed by law and that would be 18% annually.
Over that would be usurious and illegal.
If the annual rate is 18%, the monthly rate is 1.50% and the daily rate is .04932%.
Rates are usually quoted as annual rates, although, any contract could state whatever terms everyone agrees upon, within the limits of the law.
If the 18% is "allowed by law", that would imply that is the maximum rate allowed by law and that would be 18% annually.
Over that would be usurious and illegal.
If the annual rate is 18%, the monthly rate is 1.50% and the daily rate is .04932%.
