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Consumer Loans: Split Interest Rate
I recently received an e-mail from a customer concerned with upcoming law changes regarding their state consumer loans interest rates. Some states are enacting laws setting maximum interest rates in the form of a tier. One good example is the state of Florida. If you are licensed, you may charge the maximum annual interest rate of 30 percent per, computed on the first $2,000 of the principal; 24 percent per on that part of the principal amount exceeding $2,000 and not exceeding $3,000; and 18 percent per on that part of the principal amount exceeding $3,000 and not exceeding $25,000.
In many instances, when two or more interest rates are to be applied to a loan, it’s perfectly legal to charge one single rate. That single rate must produce at the time of maturity, same total amount of interest that would result from the application of the permitted multiple rates. Deal Pack allows you to set up to three different dollar ranges and interest rates for Consumer Loans to accommodate these kinds of requirements. Once you set your parameters and enter the dollar range, Deal Pack will calculate all consumer loans using those rates. Your customers will see one rate on their form instead of multiple and you can maximize your profits.