Question : how much interest rate should I pay if I borrow money from a friend?
I need to borrow money from a friend shortly, but dunno how much interest rate should I pay her? I wonder how much is the current annual mortgage rate? I mean *annual*. I guess I should pay a interest at rate close to that , shouldn't I?
- asked by ufogirl
All Answers:
Answer #1
from a close friend no interest. from an ordinaryfriend she should charge you what the bank charges=.^
- answered by kevin
Answer #2
6% flat interest
- answered by cannot_remember_chit
Answer #3
The usually interest rate ordered by courts is10%. You could use that as your guideline. Or,you could check with banks in your area and seewhat the going rate is on loans. These willprobably differ depending on the type of loan itis. If the money is for something other than ahouse, like for a car or just to survive on, baseit on what a bank loans out for something similar.
- answered by rllthethird
Answer #4
I would never make a friend pay interest. thatsjust lame. I duno when i owe a friend like 40bucks or something, I'll just give them 50... just to be nice but thats about it.
- answered by Jenn E
Answer #5
I would pay at least what they would get if theyhad there money in an interest bearing account sothey were not disadvantage but probably somewherenear what I would have to pay if I went for aregular loan.
- answered by energybuild
Answer #6
Don't borrow money from a friend. If you can'tafford it, don't buy it. If you can't repay yourfriend, it may adversely affect your relationship.Use a bank if you need a loan. If you can't getthe loan from a bank, you can do without. Unlike aloan, you can't just go to an institution and geta friend.
- answered by rod85
Answer #7
Depends on a few things; how much money, how longwill you need to repay, can you get credit at abank, and how good is your friendship?If you needa lot of money (say, over $1000) and will requireseveral months or more to repay, the two of youshould write up a contract and stipulate theinterest rate in the contract. If it's grocerymoney for a couple of weeks, don't worry aboutit.Your friend is NOT a bank. She should notcharge you bank rates. I would say rates at 1/2to 2/3 of bank rates. Part of what you pay a bankin interest is for SERVICE on your loan. Whatkind of service will your friend provide? NOW,this changes if you have poor credit and can't geta loan from a bank. Then, she is doing you aneven bigger favor and you should be willing to paybank rates.Finally, is borrowing this money worthstraining yoru friendship? If not, try to get themoney elsewhere. If the answer is yes, yourfrienship can handle it, then go forward but putwritten safeguards in place so if something goeswrong, you can still be friends when it'sover.Good luck.
- answered by JustAskin
Answer #8
Never borrow money or go into a business with afriend or realative.... You will no longer befriends. I wish you would have told us theamount of the loan. But I think $10 a monthshould cover it.....
- answered by Gerald
Answer #9
if you borrowed from cash call , they charge99.9%, fair would be haft of that 50%. one of thebest way to loose a close friend is to borrowmoney from them, i wouldn't do it
- answered by lynda d
| 
measure and fulfill your financial needs
