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?