Loan fees and usury limits

[Guest lfriede]

I'm just wondering if anyone has any comments about loan setup fees and usury limits. If a plan imposes a $100 setup fee on all loans, a $1,000 loan for a one-year period could run up against usury limits. I cannot find much information about this and am hoping that someone can comment. Thanks.

[k man]

a set up fee is not interest so there is no application of the usary rules. fees must be reasonable but 100 is probobly not unreasonable.