Definition - What does Interest mean?
Interest is the cost of borrowing money. Typically, interest can be accrued over different time periods including annually, monthly, weekly, or even daily. There is a limit to what interest rate can be charged. This is dictated on a state by state basis, but in most states in the US the limit is 23 to 24%. Any interest that is charged at a rate higher than this would be considered usery and would be deemed invalid if a person were to take it to court.
Justipedia explains Interest
When a loan is taken out, the benefit to the lender is the interest that accrues on their loan while it is outstanding to the debtor. In some cases, repayments can be made on the interest alone for the first set number of payments.