Legal Definitions - interest-free loan

An interest-free loan is a type of loan where the borrower is not charged any interest on the amount borrowed. This means that the borrower only has to pay back the amount they borrowed, without any additional charges.

For example, if John borrows $1000 from his friend Jane as an interest-free loan, he only has to pay back the $1000 and not any additional interest charges.

Interest-free loans are often given by family or friends, or by organizations for specific purposes such as education or entrepreneurship.

Overall, interest-free loans can be a great option for borrowers who want to avoid paying high interest rates on their loans.