Questions tagged [personal-loan]

To be used for questions on loans that do not require any security. Can also be used for questions involving borrowing from friends and family. Please add country tag

57
votes
8answers
20k views

Can I become debt free or should I file for bankruptcy? How do I manage my debt and finances?

I am 35 years old, single, and live in the US. My income is 78K to 80K after taxes and insurance. I pay $1,500 for rent+utilities, $150 for phone bill, $450 for auto loan, $300 for auto insurance (...
40
votes
4answers
13k views

I am considering leasing a new car for my ex-wife. What can go wrong?

My ex-wife is a financial wreck and is about to lose her car (lease is over) in an area of the country where you can't get around without one. She can't get a new one because her credit is really bad ...
29
votes
12answers
7k views

How can I legally and efficiently help my girlfriend build equity by helping with a mortgage?

I am in a committed relationship -- but for various reasons don't want to get married. I just bought my first apartment for $200,000 on a 30 year mortgage. My girlfriend will be living with me but her ...
19
votes
7answers
9k views

3% personal loan online. Is this a scam?

Individual offering a 3% loan, any amount, any length of repay time. Requires no collateral, no signature, everything done online. Information I'm required to supply: Name Country City Address Gender ...
17
votes
1answer
5k views

How to handle a parent going through divorce asking to borrow money

Asking for a friend. The parents are currently going through a divorce and one parent is struggling a bit financially to pay for lawyer fees for example and needs to borrow money. The problem is that ...
16
votes
3answers
2k views

Why do new car loans, used car loans, and refinanced loans have different rates and terms?

If I want to refinance a car that is two years old, and getting a new car loan is better APR then a used car loan and even a refinanced loan, why does it matter which way you go? Isn't a loan just a ...
15
votes
4answers
9k views

How much interest should I pay on a loan from a friend? [closed]

I borrowed 500.00 from a friend, several years ago, and want to repay him. Although the subject hasn't come up, it has always bothered me. What kind of interest should I apply to this personal loan?
15
votes
2answers
3k views

Father wants to gift child with approx $200k. Smartest way from USA tax perspective?

The father would like to find the best way to help his (~40 year old) daughter with approximately $200k in home loans. Without (yet) seeking professional advice, he has loosely considered: Gifting ...
13
votes
2answers
2k views

In which situations is it better to consider a loan instead of paying cash?

I live in France where credit cards are less widespread than in the U.S. The default account for us is a checking account. Often you can't spend more than what is in your account; otherwise you have ...
12
votes
3answers
4k views

Can I take personal loan in UK and send the proceeds to parents abroad?

I am an EU citizen and have been working many years in UK. I don't have any debts, but do possess a good credit score thanks to using a credit card all that time. My parents are thinking of buying a ...
9
votes
3answers
5k views

Can I charge interest on money that I have lent out, even though I am not a financial institution?

On the news a couple of years ago, in BC, they said that if you are NOT an financial institution, it was illegal to charge interest on any money that you have lent out. Now I live in Alberta. And ...
9
votes
4answers
2k views

Should I get a personal loan to pay on my mortgage to go “above water” to qualify for a refinance?

I purchased my primary residence in 2007. The rate was 5.99% on a 30 year fixed. Rates have dropped dramatically since then, but so have home prices. I wanted to refinance a while back, but it looked ...
8
votes
3answers
6k views

INR 10 million borrowed from friend at 7% interest per annum

If my friend transfers INR 10,000,000 into my bank account and we make a legal document for the same to return the amount at 7% per annum for next 12 yrs, should I pay tax on the same? If my salary ...
8
votes
1answer
278 views

Would it be wise to add a person to the Title of my property to obtain a loan?

An friend acquaintance of mine is willing to lend me $10,000 at 15% if I will put her on Title to my property as collateral. I will pay nothing back until I sell my property. What are the risks in ...
8
votes
1answer
2k views

Borrowed money from a friend for my business, & can't pay it back. Got a lawyer's letter. What can happen?

I borrowed some money from a friend of mine for use in my business and I am not able to pay back to him now due to the bad business. Actually, he put the money into my business first and later decided ...
7
votes
2answers
2k views

Are there any catches to a bank's offer of 0% convenience checks?

My bank has sent me these 0% APR checks for years and I recently find myself in a situation where it would be useful. I have a lot of wedding expenses which will not be a problem in the long term (6 ...
6
votes
6answers
2k views

Is it a good idea to get an unsecured loan to pay off a credit card that won't lower a high rate?

My wife and I just called the customer service department of a credit card company, only to find them "unable" (at the account manager level) to lower the 25% APR on the card. The guy went on to say ...
6
votes
5answers
2k views

What is the next step to collect money after a judgment has been ignored?

How do I recover my personal injury settlement money that my ex-husband illegally took? I have a judgment against him to return the settlement with no results. How can I get money now? Can I sell the ...
6
votes
1answer
907 views

Shopping around for loans without detrimentally affecting credit rating/chance of getting said loan?

I've found myself stuck in a quandary. I put a deposit down on a car and I'm trying to obtain a personal loan based on this. The problem is that I'm finding that despite passing all initial checks ...
6
votes
1answer
30k views

What are some good options for getting a short-term personal loan?

What good short-term personal loan options are there, for someone who will soon have ability to pay them off? (I'm looking for names of institutions, like "X lending company", Wells Fargo, etc.) I'm ...
5
votes
2answers
4k views

Do I have to use the entire loan amount?

I am 18 and I want to apply for a loan for a used car. I do not plan on paying more than $4000 for the car but the bank has a minimum of $7500 for car loans. If I only used $4000 could I just use the ...
5
votes
3answers
3k views

Should I get a personal loan or a line of credit?

Looking to buy a new computer. While I can afford to buy it outright, I'm looking to get a loan to help make my credit a touch better. But I'm wondering if I should just go with a line of credit, ...
5
votes
3answers
266 views

How to diversify P2P lending accounts?

I've been interested in peer-to-peer lending for 3-4 years now since I first heard about it with Prosper.com. I've since heard about Lending Club, and this Q/A gave me a lot of insight. In particular,...
5
votes
1answer
3k views

Does money borrowed from other people in U.S. need to be reported in tax report?

I have a friend who is willing to lend me some money (about 40k dollars), since I am not financially well. We are foreigners studying and working in the U.S. (F1 and H1 visas). We report taxes ...
5
votes
2answers
690 views

Should I attempt to consolidate my own debt, or hire a professional? (Are there caveats to consolidating your own debt?)

I have some credit card debt across 3 accounts. Currently they're all at 0 APR, but the promotional rates are set to end soon, and I don't want to open any more accounts. In this situation, I'm aware ...
5
votes
1answer
1k views

Buying out a sibling's portion of inherited real estate

Sorry, this is a bit long, so I won't blame you if you skip down to the dilemmas & questions at the bottom due to TL;DR The backstory: About 15 years ago my siblings and I inherited several ...
5
votes
2answers
769 views

I have paid $7000 extra of my mortgage in 6 months. Should I transfer this to my $11,000 car loan or is it better of the home loan?

My car loan is 6.49% but it costs $12 a month for every month you pay it off early. It is a 60 month loan, I have been on it for 6 months and have paid off $2500 (From $14 000 to $11-500. My ...
4
votes
2answers
294 views

why don't banks invest money in mutual funds or shares instead of giving personal loans

Banks offer personal loan at interest rate of 11 %, but why don't they invest those money in mutual funds or shares and earn more ?
4
votes
1answer
541 views

Lending money to colleague with interest - how to legally bind agreement

A colleague of mine has student loan debt of ~35K at 7% APR interest. I have more than enough principal to pay off his debt, and for my troubles (and risk), I think asking for a 4% APR is not out of ...
4
votes
4answers
316 views

Should I take a personal loan for my postgraduate studies?

About 6 months ago, I embarked on a Master's degree. Prior to this, I did the math on the postgraduate program and set aside about $31,000 on a separate savings account just for the postgraduate ...
4
votes
1answer
890 views

What steps or checks should I do to see if a lending company that cold-called me is legit? Too risky?

A few days ago I got a call from company asking me if I have any outstanding debts and saying they can help me with my debts. Well, I don't have any debts; though I use 3 credit cards, I always pay ...
4
votes
3answers
6k views

How do I calculate interest on a personal loan with irregular withdrawals and payments?

Several years ago, I loaned money to a family member. They borrowed different amounts at irregular intervals. They are now beginning to repay, so I want to establish exactly how much they owe. I have ...
4
votes
1answer
2k views

Islamic Banks and Personal Lending

As per my previous question on "The difference between Islamic Banks and Western Banks", it was answered that Islamic Banks do not charge interest but instead agree on a percentage of profits the ...
3
votes
2answers
247 views

Securing a loan with a loan, does this even make sense?

My friend wants to buy a house; however he does not have the capital to put twenty percent down because he loaned out his capital as a secured business loan last? year. He thinks all other business ...
3
votes
3answers
2k views

Is interest on a personal loan tax deductible?

My father loaned me money to invest in a company and the company pays me quarterly profits. I have to pay back the loan to my father plus interest. What I would like to know is whether or not the ...
3
votes
1answer
223 views

Why do I need to specify exactly what a personal loan is for?

I'm looking at getting a personal loan for a variety of reasons, some good, some not great. I don't know about the rest of the world but in New Zealand they seem to want to treat me like an idiot ...
3
votes
1answer
138 views

Loan Denial and Reapplying

I recently applied for a personal loan. I made it to the final stage of approval after uploading my paystubs, payoff notices, bank statements, etc. I ultimately received a decline notice stating that '...
3
votes
1answer
90 views

Interest-free loan: how is “utilisation” calculated re credit score?

I have, historically, always had an excellent credit score. I never spend beyond my means, and always pay off my credit card in full every month. I really only have the credit card in order to accrue ...
3
votes
1answer
148 views

The penalty on early redemption of a personal loan

According to the TOS written here: https://www.sc.com/sg/personal-banking/tnc/en/_pdf/cb_all-tnc.pdf (bottom of page 51) 37.2 The following terms and charges will apply if you close the CashOne ...
3
votes
1answer
275 views

Personal loan to a friend procedure

I see a few questions on this topic, but I am more concerned with the procedure and best practices. If I give this person the money first (~$10,000), can I still have them sign a promissory note/loan ...
3
votes
2answers
1k views

Take new loan to pay off old one, what would you do in this scenario?

This is my current loan. Loan Amount : £11,750 Total Interest : £6,422.40 Interest Rate : 21.2% per year Total : £18,172.40 Pay per month : £306.19 Term : 60 months (5 years) I'm 2 years into the ...
3
votes
2answers
267 views

What is the best way to help my dad consolidate his credit card debt at a lower rate?

So my father and I are somewhat in a sticky situation. He has accumulated roughly $30k debts on his credit cards. He makes decent money now but the problem is paying about $650 a month in interest ...
3
votes
3answers
363 views

3 loans under my name, 2 are fixed, one is a declining balance interest loan. Which to pay first?

I've searched for this answer for a while, but my loans are set up in a different way and I'd love some advice. (FYI I don't live in the USA) Loan 1: Personal loan. It was $200,000 with a 4.95% Fixed ...
3
votes
0answers
81 views

Setting up a personal loan, how do I report to CRA?

I am about to make a simple loan to a family member. I have a contract written up, and a payment schedule that we will both sign as well, along with a witness. While the interest rate I am charging ...
2
votes
2answers
719 views

Personal loan to renovate my mother's home

Am I allowed to take out a personal loan to fix up my mother's basement for me to live in? How do loans work in this situation? Any help would be appreciated. Thanks!
2
votes
4answers
7k views

Can a friend put up collateral for my secured loan?

I'm the friend. My mom needs a loan from me and figures involving a bank might avoid some headaches. She wants me to lend her 20K. Wire it to the bank. Then the bank will (presumably) lend her 20K. Do ...
2
votes
2answers
285 views

Allowed roommate to make a purchase on my credit card. How do I calculate her interest?

On Nov 5th my roommate had a medical emergency for her cat. The bill totaled $1097.46. I was with her, and we put the bill on my credit card with the understanding she would pay it back, including any ...
2
votes
1answer
80 views

Purely theoretical question about taking a loan

If I take a loan of $1000 by agreeing to pay $50 + 10% interest each month what will happen if lets say the value of $1 doubles 4 months after? would I owe more money to the bank? Are there loans ...
2
votes
2answers
81 views

Simple loan with a mortage as collateral

I have an employee asking for a small loan to pay his personal property taxes., he is 3 years behind on....I will loan him the money but I need collateral. How can I have him sign his house as ...
2
votes
1answer
155 views

Is it advantageous to use a lower-interest rate loan to enrich the savings account of an offset mortgage?

Background: I have an offset mortgage on my house. I specifically chose an offset mortgage as my employment circumstances mean there will be irregular and unpredictable cash flows in and out during ...