No interest loans

Posted By: WIBanker91

No interest loans - 03/04/20 08:27 PM

Does anyone know if there is a prohibition against doing a consumer or commercial loan at a 0% interest rate? (Other than bad for business, in this case it is a work out situation).
Posted By: rlcarey

Re: No interest loans - 03/04/20 08:33 PM

Not aware of any prohibition.
Posted By: Rocky P

Re: No interest loans - 03/04/20 09:47 PM

Same as Randy's. Just make sure the bank has a policy about it, and is consistent with that application of policy . If you only did it for companies owned by white guys to the exclusion of businesses owned by women or other minorities you can create a fair lending issue