Are individuals allowed to give loans to consumers?

Answers:3   |   LastUpdateAt:2012-09-23 15:33:03  

Question
SadRebel
Asked at 2012-08-20 03:53:27
I was thinking of saving money , but I'm sure there are a lot of poeple who want a loan but have a poor credit rating , and I could charge a high rate of any savings account ... Is there any law to prevent me from writing a contract with a person I have to repay the loan with compound interest, etc ? MedlinePlus MedlinePlus I made a module contract law at university so in theory I think it should be mandatory , unless the existing laws to counter or deny any aspect of the contract or how I govern loans person can put in place. MedlinePlus MedlinePlus Any advice would be interesting to hear .
Answer1MelissaAnswered at 2012-08-21 22:01:03
Yes , there are laws that prohibit a bank compete . One thing is to make a personal loan to a friend or relative , but quite another to charge interest above and beyond what is legal . Your question is more directed to an attorney or legal clinic .
Answer2LucieAnswered at 2012-09-10 16:51:03
Go through Prosper.com so they can draft the contract and select the desired interest rates , etc MedlinePlus MedlinePlus Many people are helping people like this and making money ....
Answer34everAnswered at 2012-09-23 15:33:03
Yes , people can make a loan to someone else and have a contract drawn up and receive monthly payments . MedlinePlus MedlinePlus I've done many times in different ways . The first loan I made was through a realtor I knew , I had a customer who was buying a house . They needed a second mortgage to get the first mortgage under 80 % LTV so you would not have to pay mortgage insurance . MedlinePlus MedlinePlus The title company prepared the paperwork and got a second deed of trust on the property. They made payments to me until a couple of years later I was refinanced and paid off . MedlinePlus MedlinePlus Just make sure that the whole person and the application and check the credit of the people , references , income and obtain written . Also, hopefully you get warranty , as RE , motor vechicle or other property that is worth at least what you are giving . MedlinePlus MedlinePlus I'm also sure there are laws that regulate how often you can do this before it is considered a financial institution that is regulated . But , I'm sure most of us are far from being in that situation .
Related Questions
1
  • Answer This Question:Are individuals allowed to give loans to consumers?