Structuring a Personal Loan using SD-IRA funds

[Nathan Moore]

I'm looking for advice on how to structure a personal loan for a friend so they can consolidate credit card payments. They have 9 open lines with retail store credit with a balance of $9,000. I'd like to use my Self-Directed IRA to loan them the money and I am curious of possible terms, interest rates, and agreement structure that members may have used before.

The friend can afford about $400/mo so that would be a ~24 month term if that helps. 

The current avg APR they are paying across all credit cards is ~25%. So, I was thinking 10 or maybe 12% for a 2 year term... not sure if that is too high or not.

Any advice or tips are always welcome from the BP world.  Thanks in advance!