Hi,
I have an in law who has asked to borrow a sum of money. The in law is working full time and has capacity to repay. In order to lend the money, I will need to withdraw from my own mortgage account which effectively means I’m paying interest for the in laws loan. The interest amount in question is approximately $1500 to $2000.
At the same time I am saving for a house and will need to borrow from the bank to have sufficient funds.
My question is, is it right for me to charge her interest. It is family (in law) however it does not feel right I should be paying interest for the loan.
I have already lent the money, and at the time it was agreed by both parties interest would be applied upon repayment.
Should I charge or not charge?
