Usury Laws by State – Legal maximum interest rates a lender can charge

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Usury Laws by State – Legal maximum interest rates a lender can charge

Each state has a Usury law that limits the amount of interest a lender can charge. It is a good idea to check your state’s usury laws before signing loan agreements. The loan agreement should not have an interest rate that exceeds the state’s usury limit.

*FRDR= Federal Reserve Discount Rate – more info here 

Alabama

Interest Rate Limits

The limit is 8%.

Exception

Principal loan balances over $2,000

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Alaska

Interest Rate Limits

The limit is 10.5%. is the limit.

Exception

For express contract agreements, the limit can be 5% above legal rate.

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Arizona

Interest Rate Limits

The limit is 10%.

Exception

There is no limit for rate contract in writing.

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Arkansas

Interest Rate Limits

The limit is 5% above current FRDR.

Exception

no exceptions

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California

Interest Rate Limits

For consumer loans, the limit is 10%; for non-consumer loans, the limit is 5% above the FRBSF Discount Rate

Exception

no exceptions

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Colorado

Interest Rate Limits

For consumer loans, the limit is 12% ; for non-consumer loans, it is 12%.

Exception

No exceptions

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Connecticut

Interest Rate Limits

12% is the limit.

Exception

Mortgages of real property greater than $50,000, the maximum legal interest rate for a business loan between the value of $10,000 and $250,000 may not exceed 17% plus the Deposit Index.


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Delaware

Interest Rate Limits

5% above current FRDR

Exception

No limit on the interest rate if the loan is greater than $100,000 and the loan is not secured by a mortgage against the principal residence of the borrower.

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Florida

Interest Rate Limits

For loans less than $500,000 the limit is 18% and for loans greater than $500,000 is 25%.

Exception

No exceptions

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Georgia

Interest Rate Limits

For loans less than $3,000 the limit is 16%, and for loans of $3,000-$250,000, the limit is 5% per month. (must use simple interest)

Exception

no exceptions

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Hawaii

Interest Rate Limits

For personal loans, the limit is 10%.

Exception

No exceptions

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Idaho

Interest Rate Limits

For personal loans, the limit is 12%.

Exception

No exceptions

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Illinois

Interest Rate Limits

personal loans 9%

Exception

no exceptions

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Indiana

Interest Rate Limits

loans less than $50,000 21%

Exception

no exceptions

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Iowa

Interest Rate Limits

Iowa Superintendent of Banking determines Iowa monthly max rate

Exception

There is no limit for purchasing real property or refinancing the purchase of real property on loans greater than $25,000. For constructing improvements on real property loans greater than $25,000 for personal, family or household purposes, and loans for business or agricultural purposes

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Kansas

Interest Rate Limits

The limit is 15%.

Exception

Loans secured by real estate is 1.5% above the yield of thirty-year fixed rate conventional home mortgages

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Kentucky

Interest Rate Limits

For loans less than $15,000 the limit is lesser between 19% or 4% above current FRDR.

Exception

No limit for loans greater than $15,000

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Louisiana

Interest Rate Limits

12% is the limit

Exception

adjustable rate mortgage is 17%

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Maine

Interest Rate Limits

no limit

Exception

no exceptions

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Maryland

Interest Rate Limits

8% is the limit

Exception

numerous exceptions

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Massachusetts

Interest Rate Limits

20% is the limit

Exception

no exceptions

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Michigan

Interest Rate Limits

7% is the limit

Exception

numerous exceptions

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Minnesota

Interest Rate Limits

8% is the limit

Exception

loans less than $100,000 for business or agricultural are 4.5% above the discount rate on 90-day commercial paper at the Minnesota Federal Reserve.

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Mississippi

Interest Rate Limits

more than 10% and 5% of current FRDR

Exception

loans greater than $2,500 for a business purpose is 15% and 5% above the FRDR  at the time the loan is made. Mortgages are more than 10% and 5% above the 20 Year Constant Maturity Index of Long-Term United States Government Bond Yield

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Missouri

Interest Rate Limits

more than 10% and 3% above the long term United States government bond yield

Exception

no exceptions

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Montana

Interest Rate Limits

more than 15% and 6% above the Wall Street Journal Prime Rate

Exception

no exceptions

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Nebraska

Interest Rate Limits

16% is the limit

Exception

see Nebraska Revised Statute 45-101.04.

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Nevada

Interest Rate Limits

no limit

Exception

no exceptions

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New Hampshire

Interest Rate Limits

no limit

Exception

no exceptions

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New Jersey

Interest Rate Limits

16% is the limit

Exception

no exceptions

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New Mexico

Interest Rate Limits

No limit for written loan agreement

Exception

no exceptions

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New York

Interest Rate Limits

16% is the limit

Exception

no exceptions

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North Carolina

Interest Rate Limits

loans greater than $25,000 is 16% and 6% above 6 Month US Treasury Bills

Exception

no limit if loan less than $25,000; no limit for mortgage loan less than $10,000

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North Dakota

Interest Rate Limits

consumer loans and personal loans 5.5% above the 6 Month US Treasury Bills

Exception

no limit if loan amount is greater than $35,000 or the loan is made to a partnership, limited partnership, or association that files a state or federal partnership income tax return

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Ohio

Interest Rate Limits

loans less $100,000 is 8%

Exception

no limit if the loan amount is greater than $100,000 or the loan is a demand note and unsecured

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Oklahoma

Interest Rate Limits

10% is the limit

Exception

no exceptions

More Information

Oregon

Interest Rate Limits

loans greater than $50,000 is 12% and 5% above the FRDR at the time the loan is made

Exception

no exceptions

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Pennsylvania

Interest Rate Limits

unsecured loans greater than $50,000 is 12%; loans less $50,000 is 36%

Exception

no exceptions

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Rhode Island

Interest Rate Limits

21% or 9% above the Wall Street Journal Prime Rate

Exception

no exceptions

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South Carolina

Interest Rate Limits

no limit

Exception

no exceptions

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South Dakota

Interest Rate Limits

18% is the limit

Exception

no exceptions

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Tennessee

Interest Rate Limits

less than 24% and 4% above the Bank Prime Rate

Exception

no exceptions

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Texas

Interest Rate Limits

10% is the limit

Exception

no exceptions

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Utah

Interest Rate Limits

no limit

Exception

no exceptions

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Vermont

Interest Rate Limits

12% is the limit

The maximum legal interest rate is 18% for loans secured by motor vehicles, mobile homes, travel trailers, aircraft, watercraft and farm. For loans secured by older collateral the maximum legal interest rate is 20%. The maximum legal interest rate is 18% a second mortgage.

Exception

no exceptions

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Virginia

Interest Rate Limits

12% is the limit

Exception


The maximum legal interest rate is 18% a second mortgage.

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Washington

Interest Rate Limits

greater than 12% and 4% above the 26 Week Treasury Bill

Exception

no exceptions

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West Virginia

Interest Rate Limits

8% is the limit

Exception

limit for mortgage 9%

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Wisconsin

Interest Rate Limits

8% is the limit

Exception

limit for mortgage 9%

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Wyoming

Interest Rate Limits

8% is the limit

Exception

limit for mortgage 9%

More Information

*Note this page is just a reference page and may not be up to date. Use at your own risk.

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