no interest loan is a gift in the amount of interest.

来源: 于 2016-05-16 10:46:27 [旧帖] [给我悄悄话] 本文已被阅读：次

200,000 loan, prime rate = 3.5%, if the loan has no interest, it is equivalent of the friend give you $7000 gift this year.  

A person giving out more than $14,000 gift to a person need to pay gift tax.  So your friend doesn't need to pay tax.