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charlie
Lv 5
charlie asked in Business & FinancePersonal Finance · 9 years ago

is it ok to lend money as personal loan in California?

I live in California, is it legal to lend money and charge 1% interest?

If I want to do a personal loan to people, let's say 20k max each, and charge them 1% interest, is it ok and legal in California? Will the banks kill me?

4 Answers

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  • Nifty Bill
    Lv 7
    9 years ago
    Favorite Answer

    To tell you the truth, beyond the legality stuff, it is just plain stupid. People will take advantage of you, and not pay you back. That's why they come to you, because they can't get a loan else where, and have ruined there credit scores already. Don't do it.

    No the banks won't even know, is it legal, probably not because you are not licensed to do business as a lender.

  • Shelley
    5 years ago

    1

    Source(s): Instant Approval Personal Loans - http://personalloans.ohfos.com/?jEy
  • suzonka
    Lv 4
    9 years ago

    I think if its a verbal contract between you and the other party no one can do anything to you , how ever if you have to take it to court ,they legalities could be different

  • MoneyMen
    Lv 7
    9 years ago

    I don't know about legal, but I do know it is intensely stupid unless you are in the mob.

    Which obviously you aren't since you clearly don't understand the concept of risk and return.

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