Is it legal for a lender to charge interest on a loan?

If you don’t organize your fpersonal finance so your needs are fully covered by your salary If you do not have the habit of saving in accordance with the possibilities of your income level and in a way that will enable you to have financial resources, you may find yourself above your spending capacity and have to take out loans to get ahead in life. two weeks in exchange for starting to drag debts. In this sense, Is it legal to borrow money and get interest?

Even if you haven’t budgeted or forecasted ask for debteven emergencies may leave you no choice, but individuals or informal organizations It is actually an activity that is not regulated by the authority so that they can provide you with some money.

The only entities legally authorized to provide financial products to individuals and to charge an interest rate. Credit Institutions LawWhile the gray area between the illegality of these practices is exploited by many committed to lending money unless it is determined to be usury, In Article 387 of the Federal Criminal Code.

It is understood that giving money to third parties and demanding interest in return is not an illegal act per se. It is stated that usury is a crime by taking advantage of someone else’s ignorance or economic situation. gain user benefits through contracts or agreements where higher-than-normal revenue or profits are anticipated in the market.

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In other words, people who decide to offer money to someone else without official permission and demand interest at rates ranging from 20% to 160% of the average rates in the market, can receive complaints by forcing them to pay monthly or in installments. will not be allocated to the original capital, making it seriously difficult to get out of debt.

This is a lot of informal organizations that try to do business under the express loans method, which are often not reviewed by the client’s Credit Bureau, but charge interest rates in excess of 600% or even double. In some parts of Mexico, the lender of high-interest money is called an agiotista and even requires a pledge as collateral for the money given.

In these cases, to maintain consistent accounting, it is possible to choose to keep an accurate record of the financial commitment through promissory notes that clearly state how much interest will be charged.

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If lenders want to make this activity a source of income, they must first apply to the authorities to report their tax liability to the Tax Administration Service (SAT) along with the relevant tax payment.

For more information on these and other topics, visit our section credit of the my pocket.