How much interest rate should I pay if I borrow money from a friend?

I need to borrow money from a friend shortly, but dunno how much interest rate should I pay her? I wonder how much is the current annual mortgage rate? I mean *annual*. I guess I should pay a interest at rate close to that , shouldn't I?|||6% flat interest|||from a close friend no interest. from an ordinary friend she should charge you what the bank charges =.^|||The usually interest rate ordered by courts is 10%. You could use that as your guideline. Or, you could check with banks in your area and see what the going rate is on loans. These will probably differ depending on the type of loan it is. If the money is for something other than a house, like for a car or just to survive on, base it on what a bank loans out for something similar.|||I would never make a friend pay interest. thats just lame. I duno when i owe a friend like 40 bucks or something, I'll just give them 50... just to be nice but thats about it.|||I would pay at least what they would get if they had there money in an interest bearing account so they were not disadvantage but probably somewhere near what I would have to pay if I went for a regular loan.|||Don't borrow money from a friend. If you can't afford it, don't buy it. If you can't repay your friend, it may adversely affect your relationship. Use a bank if you need a loan. If you can't get the loan from a bank, you can do without. Unlike a loan, you can't just go to an institution and get a friend.|||Depends on a few things; how much money, how long will you need to repay, can you get credit at a bank, and how good is your friendship?





If you need a lot of money (say, over $1000) and will require several months or more to repay, the two of you should write up a contract and stipulate the interest rate in the contract. If it's grocery money for a couple of weeks, don't worry about it.





Your friend is NOT a bank. She should not charge you bank rates. I would say rates at 1/2 to 2/3 of bank rates. Part of what you pay a bank in interest is for SERVICE on your loan. What kind of service will your friend provide? NOW, this changes if you have poor credit and can't get a loan from a bank. Then, she is doing you an even bigger favor and you should be willing to pay bank rates.





Finally, is borrowing this money worth straining yoru friendship? If not, try to get the money elsewhere. If the answer is yes, your frienship can handle it, then go forward but put written safeguards in place so if something goes wrong, you can still be friends when it's over.





Good luck.|||Never borrow money or go into a business with a friend or realative.... You will no longer be friends. I wish you would have told us the amount of the loan. But I think $10 a month should cover it.....|||if you borrowed from cash call , they charge 99.9%, fair would be haft of that 50%. one of the best way to loose a close friend is to borrow money from them, i wouldn't do it