I am not an attorney, but you might want to consult with one before to go forward with this proposed loan.
If you are in CA, that loan would be considered USURIOUS were it to be discussed in front of a judge, I believe. When judges see such usurious loans they typically require that the lender accept zero percent interest to get their money back.
All of the the things you mention would be only the minimum level of action on your part. You should have a copy of their driver's licence, I feel. If the person has real estate you would get a personal note and then record in the recorders office of the county in which the property is located a deed of trust secured by the real estate. If there is no real estate and they have a free and clear car, boat, or other valuable assets, you would have them give you the pink slip or whatever is the suitable way to put up the asset as collateral.
That seems like an extremely high loan interest rate to me. Maybe 3% to 10% a month might make sense, but 60%?
And what is the source of the repayment money? Is this person going to use that money to make a bigger profit than the money you are to get back? If not, you likely should not be loaning the money. If they are in a "tight" situation and desperately need the money, as it sounds given such a high interest rate, what is supposed to relieve the situation so they can pay you back?
It is one thing to help people out, it is another thing to help them out expecting to make outrage profit on it, it seems to me.
Write up the contract with what will happen if they don't pay back as agreed. What additional money will they have to pay? What actions can you take to attempt to recover your money?
You might suggest they borrow the money somewhere else. Then you don't take the risk of never getting back the money.
Good Investigating*********Ron Starr************