QUESTION
A loan contract indicated the interest rate is “per annum”, but the term of the loan is seven months.
Asked on Aug 28th, 2024 on Debtor and Creditor - Georgia
More details to this question:
The borrower did not pay the loan on the due date, in fact over a year has passed. According to the loan contract interest will applied to the loan until the debt is paid. The question, is the interest accrued on the anniversary of the due date(seven months from the date of the contract), or the anniversary of the day the contract was signed?
1 ANSWER
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4 Awards
The interest is the per annum rate, but only for the period of time of the actual loan. So if the amount of interest for a full year was, for example, $12.00. For 7 months it would be $7.00.
Answered on Aug 29th, 2024 at 9:24 AM