What is the monthly percentage of interest allowed when you lend money?

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What is the monthly percentage of interest allowed when you lend money?

The total amount borrowed was $70,000 of which only $9,000 was paid. So the remaining amount owed to me is $61,000.

Asked on September 18, 2011 under Business Law, South Carolina

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I think that what you are asking is what is considered usury in South Carolina, correct?  Well the legal rate of interest is 8.75%, and judgments bear interest at the rate of 14%. Subject to federal criminal laws against loan sharking there is no general usury limit for non- consumer transactions. The South Carolina Consumer Protection code provides regulations for maximum rates of interest for consumer transactions but this does not qualify.  What worries me here is that I think that you made a loan with out a written loan agreement and that could be a big problem for you under the Statute of frauds in your state.  Please go and seek consultation from an attorney in your area.  Good luck.


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