<prompt> Human: The loan about 15,000 to 20,000 would be for a home renovation project and we intend on paying it off within 2-3 years. My husband suggested using AFR rates. Anyone have any other thoughts on a reasonable interest rate to be charged?Edit: Thanks for all the responses. We have been looking into all our options HELOC, 401k loan, etc but wanted to get some opinions on an interest rate if we were to loan from our parents. Our thought on this is we would rather pay our family interest than a bank. And we are aware of the consequences of borrowing from family but appreciate everyones concern!  <response>: Go to a few banks and get quotes, youll get a market rate. Its nowhere close to AFR. Youre basically asking for charity at those rates which would turn this into an rrelationships question.Id start the conversation before talking rates. Fair is probably 6-10. Your parents will likely do less as a favor. 