Our Lawsuit Loan Interest Rates
The average interest rate on our lawsuit loans is 4% per month. So, if you get a $10,000 advance, the 4% monthly interest comes out to $400 per month. If your case settles 12 months later, you will owe: $10,000 + ($400 x 12) = $14,800.
Use the lawsuit loan calculator below to see what you’re likely to owe in repayment based on the size and duration of your settlement advance.
DISCLAIMER: This calculator is based on our average lawsuit loan rate. The rate quoted here is not necessarily the rate you will pay. Because we base our rates on the strength of your lawsuit, we cannot provide you with your actual rate until we assess your case by speaking with your attorney. We invite you to apply for a lawsuit loan with Nova Legal Funding anytime. There is no fee associated with this application, and it obligates you to nothing. If you are approved for a lawsuit loan, your rate will be clearly and explicitly spelled out in the agreement that we prepare for you.
Lawsuit Loan Calculator
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What is the Interest Rate of a Lawsuit Loan?
If you are considering a lawsuit loan, you are probably interested in finding the lowest interest rate available. Compared to other types of lending, pre-settlement funding can be risky and carry a higher cost. However, in many instances, a lawsuit loan can actually result in a larger settlement.
It is always good to shop around for the lowest-rate settlement funding when you want to know how much lawsuit loans cost. Since the risk associated with lending money towards a legal settlement is so high, interest rates can be high. Since the return for lenders is contingent on you winning your case, they have a chance to lose out.
For example, if you apply for a $5,000 lawsuit loan with a monthly interest rate of 3% and pay it back in six months, the lender gets $5,900 from your settlement. However, their revenue is significantly lower.
Most lenders experience a loss of around 8% in addition to the cost of borrowing the capital. So for a $5,000 loan, the lender has around $472 in losses and $300 in costs. This means the total expenses for the loan are $5,772. Once the plaintiff pays back the loan with interest, the lender only makes a revenue of $128.
This is one of the main reasons why interest rates for lawsuit loans can be anywhere between 1-5%.
How Does Nova Legal Funding Set Interest Rates?
At Nova Legal Funding, there are several factors we take into consideration when determining the interest rate of our pre-settlement lawsuit loans. This includes the strength of your case, where you filed the case, and the number of damages claimed.
It’s important to work with a company that takes all of the facts of your case into consideration when deciding on an interest rate. At Nova Legal Financial, our interest rates range from 1-3% depending on the overall strength of your case. We have some of the lowest rate settlement funding in the industry.
How Getting a Lawsuit Loan Can Result in a Larger Settlement
In many lawsuits, the defendant’s insurance company may try to offer lower settlements, hoping that you will take an offer out of financial desperation. They use this tactic because they know that pursuing a legal claim is costly.
Lawsuit loans can give you more time to pursue a higher settlement. Whether you need money to pay for living expenses after an injury or if you can’t keep up with legal expenses, a lawsuit loan helps keep you afloat until a trial. In most cases, if your case lawsuit risks going to trial, the defendant will offer a higher amount to settle in order to avoid going to court.
Apply for a Lawsuit Loan Through Nova Legal Funding
If you are having difficulty paying bills during your lawsuit, consider applying for a lawsuit loan through Nova Legal Funding. We are a nationwide provider for those in need of a quick cash advance and have the lowest interest rates in the industry.