I am one person who always has money available to me and because of that people always find it in them to come and borrow money from me. I have never had a problem with this up until recently when I realised people took forever to give back my money. Thus I started operating like a bank charging monthly interest, so that a person will know that they have to give back the money sooner than later because they will end up loosing even more. I am currently charging 30% interest on any amount that I lend people. Do you think that is a bit too much and if it is , what is the most acceptable charge rate I can give people.
It depends on how you feel about money---i.e. how easily it comes to you, what kind of resource (limited or unlimited) it is for you ... It's very-limited for me, so I have to REMIND MYSELF not to share it. It's 'supposed to be' limited to "an honest day's pay for an honest day's work" (Napoleon Hill in 1945's Think & Grow Rich ... or he might have phrased it 'work for pay,' but the point is that you need BOTH 'work' & 'pay'; his mentor--iron-magnate Andrew Carnegie--HATED wealth from the stock-market ). I would rather 'refer the loanee to a professional loaner' (if I can't find them an affordable option for what they need) than 'give them money'---give a man a fish, and he eats for a day; teach a man to fish, and he eats for a lifetime
I suppose for you to loan money you get some security of sorts from them so that in case they default you can either sell their stuff or make it yours. But that doesn't always end well . . . So, to encourage those you lend money to pay it back [and get more 'customers'], you interest rates should be a little lower than what a bank or credit union would charge but a little more than the interest you'd earn if you placed your money in a bank. So I think a 12% interest rate wouldn't be too bad. But depending on how long it will take for the money to be paid back, you can adjust the rates upwards if the repayment period is longer.
