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 12 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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