What is “interest” and how do I decide if I should charge it on a personal loan?

Interest is the cost of borrowing money, usually expressed as an annual percentage of the principal. Whether to charge interest on a personal loan to a friend or family member is a personal decision. Consider factors like the loan amount, the borrower’s financial situation, and your own financial needs. Charging a fair interest rate can compensate you for the risk and the time value of your money. Me2You allows you to specify the interest rate in your agreement.

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