Lending money?

i was wondering can i lend money to family and friends and charge interest and make a profit , is it legal to do so ? and if i can do i need a permit or something and where can i get it

Best Answer:

Ann: it is legal but you should draw up a contract with all of the details, amount loaned, interest rate charged, monthly payments, length of loan and consequences if they default, you both sign get it notarized and both keep copies

Other answer:

You'd have to have a written contract that they signed.
Too risky. Better save the money
Mortal Dimunitive:
Absolutely, it is a good thing to charge interest ESPECIALLY to family & friends.
On this Earth those that are close to us tend to take the most advantage of us!

If I lend $20 I expect $30, $100-$130, $1000-$1200.
Notice the lowest rate receives 50% interest
2nd 33%
3rd 20%.
I'm not out to make friends because thinking that way you'll more than likely be used & disrespected, I'm out to build.

LOL, You can, but if your relative was a good risk for a loan, the banks have waaaaay more money than you do.

Your state or local government has a limit on how much interest you may legally charge. Charging usurious rates are illegal.

yes it's legal, and you don't need any kind of permit;

NEVER lend to family, and never lend to friends.

you will never see the money again.

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