How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2603
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
43581946
Type Your Finance Question Here...
Rakhi Vasavada is online now
A new question is answered every 9 seconds

I have a one-time loan with a large bank to purchase a

Customer Question

I have a one-time loan with a large bank to purchase a whole-house generator. The terms are 12 month and no interest if paid off in full. If, for some reason, the loan is not retired in full and on time, does interest start on just the unpaid balance or on the entire loan amount?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

...

So sorry to answer with an "it depends," but, ... it depends :0)

...

The loan agreement could have been designed either way

...

And that's really the only way you can know for sure is to read the agreement.

Expert:  Lane replied 1 year ago.

This is basic contract law ... as long as both parties agree, ti can be ANYTHING as long as it doesn't go so high in rates that Usury laws are broken

...

(and that would take effective rates above those charged by pawn brokers and pay-day loans)

Customer: replied 1 year ago.
thanks, ***** ***** I thought...I'll just make sure it's paid in full before the deadline
Expert:  Lane replied 1 year ago.

Yes, was just looking and retail providers are actually exempt from the Usury laws in CA ... so yes, best take the conservative path (before the deadline)

Expert:  Lane replied 1 year ago.

Hope this has helped

...

Lane

...

If this HAS helped, and you If you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars on your screen) ... that's the only way I'll be credited with a portion of what you've paid JustAnswer.
...

Related Finance Questions