- Petitioner
- Angeline O. Araneta
- Respondent
- Lorelei T. Tana
- Citation
- G.R. No. 259323
- Court
- Supreme Court
- Division
- First Division
- Decided
- October 5, 2022
Summary
This case involves a loan dispute between private individuals over P200,000.00. The Arancta spouses borrowed money from the Tana spouses without any agreed interest rate. When demand for payment was made on September 20, 2017, the borrowers failed to settle their obligation. The Court of Appeals ruled in favor of the lenders, and the Supreme Court affirmed this decision with modification. The SC clarified the proper computation of legal interest, applying 6% per annum from the date of extrajudicial demand until full payment, and compound interest on overdue interest from judicial demand pursuant to Article 2212 of the Civil Code. The case demonstrates the application of default interest rates on loans without stipulated interest and the principle of compound interest on overdue obligations.