My mom-in-law got a cash loan a year ago and up to this time she is still paying it. When she applied for the loan, the agent told her that the percentage of the interest is just low, probably 5-10% each month. But when she got approved, and we computed the interest rate, we were shocked because the interest rate is almost 45%. Well she still pursued it since she really needs the money, but she is struggling for her monthly payment. Is the percentage rate of the loan acceptable or fair? Or is it too high?

I am confused reading your post @Jasmin Cottontail! Where did she applied for her loan which needs repay such a large interest rate. Generally, the interest rates are in the range of 5-10/year and if one has to pay 45% interest on her/his loan they will have to pay principal amount as interest in 2 months itself which I guess will fail the purpose altogether. Maybe I did not get the point correctly.

Her loan is worth $1,800 (USD). The agent told her that the interest per month will only be 5-10% depending on how long her contract would be. She chose to pay it in 12 months which is the maximum timeframe so the agent told her that the interest would be 9-10%, so supposed to be since it's 10%, they will only add $180 on top of her actual loan amount right? It would be $1,180 in total once it's paid off. So probably it's around $98.33/mo. (for 12 months) and she was okay with it. But then when her loan was released and she was signing the contract, she was shocked that the total amount that she has to pay is $3,061, basically $255/month which is too far from what she was expecting.