How to Make a Loan
Here is what you need to think about when lending or borrowing money from friends
or family. You’ll need to agree on the following items
(download the Loan Worksheet):
- Loan Amount
- Interest Rate: by State Usury rules (http://www.usurylaw.com/state/) and Applicable Federal Rates
(http://www.irs.gov/app/picklist/list/federalRates.html)
- Type of Loan: amortized, interest only, fixed payment amount, final payment amount,
or principal and interest due at maturity
- Length of the loan or term: 12 months, 24 months, 3 years, or 5 years
- Payments made: monthly, quarterly, annually or at maturity
- When does the interest start? When is the first payment due?
- Late penalty and grace period?
- How many days make a payment late?
- If the payment bounces – how much shall I charge the borrower?
Using the FREE
Loan Calculator
from ZimpleMoney, you’ll calculate the loan payment; estimate the final payment
due date; and access a printable loan payment schedule.
>> Need help setting up
your loan on ZimpleMoney?