Borrow money at interest – There is nothing like helping someone out of trouble. The best you can do for yourself and the country’s economy is to invest in who needs it. There are several ways to do this without getting hurt. The personal loan with interest is proof of this. Contrary to what many people think, lending money as an individual with interest is completely normal and legalized. However, when calculating the interest rate applied, the contractor usually gets a bit confused.
Since the loan is personal, it is difficult to calculate this amount. It is necessary to determine an amount in which the creditor does not leave damaged and has profits, but that the borrower also can pay. To help you understand a little more, we have selected some data that can make this decision easier. Find out how to calculate the interest rate on your loan.
Interest money: how to calculate?
As already said, lending money at interest is legal, and can be a good option for those who need to have control over their finances or want to make a good investment. However, at the time of calculating the rate, the system takes care of this and no one tells you how the interest actually went, plus the charges. There is legislation that can help anyone who is in doubt!
In the case of the individual loan the legislation governing these transactions are Articles 586 to 591 of the Civil Code. It is a good idea to give one studied in this article if you will borrow personal money. The legislation does not allow you to cover more than 12% a year, which would amount to 1% a month. Any person who covers an amount above that can be assessed by a moneylender, who is borrowing money at interest above the legal rate.
The advice of experts is to charge the amount you would receive if you left the money invested or stopped at a financial institution for example. If there is risk, such as in the case of a loan for negative people, that is, with a negative CPF, you can increase this interest a bit to get more profit.
Before lending money and calculating the value of interest rates, know that it is “Crime Against the People’s Economy” to charge interest, commissions or percentage discounts on cash debts, higher than the rate allowed by law.
It is also considered a crime to charge goodwill higher than the official exchange rate, on amount exchanged for foreign currency; or lent under a pledge that is exclusive to an official credit institution.
What you should know before you borrow money with interest
Borrowing personal money with interest can be a good investment and a good idea, but it is necessary to take some precautions to prevent and not leave at the loss. The first one, after calculating interest rates well, is to hire a specialized lawyer. Hire a specialist to assist you in this procedure, especially if it is a friend, relative or family loan.
Making a good contract is crucial if you do not want to have problems when it comes to lending money. It is good that all parties to the agreement know the conditions of the loan well so that there are no problems in the future.
You will need to declare your income tax loan. You may also have to pay the income tax on the interest rates applied on the loans.
There are risks that you can run if you do not carry out this loan properly. You can fall into the fine mesh if you do not declare correctly and if your beneficiary also does not make this statement correctly. There is also the risk of non-repayment of the loan, since there is a proximity between the interested parties.
Why borrowing money at interest rates might be a good idea
One of the main benefits of this type of investment is profitability. Many experts agree that it is more profitable than many of the investments out there.
It is not necessary to go through financiers or banks in the transaction. There is no such bureaucracy, since it is not necessary to go through all those procedures of private intermediaries. In addition, the investor already knows exactly where he is investing the money.
You are sure that by borrowing money the interest will be paid back since you know your beneficiary – alright! In addition, everything is done legally and with a very detailed contract. This is one of the safest investments when it comes to loans. Support those who need it and invest it safely!