§ 47-14-107. Computation of Interest — Installment Loans
This chapter does not limit or restrict the manner or method of contracting for interest, whether by way of add-on, discount, or otherwise, so long as the maximum effective rate of interest does not exceed that authorized by statute.
For installment loans, the maximum effective rate of interest shall:
Be determined in accordance with the actuarial method;
Be calculated, in the case of a precomputed loan, on the assumption that all scheduled payments will be made as contracted; and
Not be affected by the prepayment of the loan, in whole or in part.
