We are attempting to do a residential real estate loan with an 11% rate. Our system gives us a warning stating that under Illinois law a minimum interest charge is not allowed on a residential real estate loan with an interest rate greater than 8%. Can anyone tell me where I can find information regarding this for Illinois specifically? Thanks.

The Interest Act (815 ILCS 205/4)General Interest Rate section states: In all written contracts it shall be lawful for the parties to stipulate or agree that 9% per annum , or any less sum of interest...before or after July 1, 1969... any rate of interest greater than the maximum lawful rate at the time the contract is made, is void

Hope that helps.