Usury Laws by State

LoanBack.com on 03/02/2011

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Each state has its own regulations on the maximum interest rate that can be charged for a loan. The maximum interest is also commonly referred to as the "usury limit". When you build your loan you should make sure that you check the usury rate for the state in which the loan is being made. If your loan’s interest rate exceeds a state’s usury limit it could impact the legality of your loan.

While we do our best to keep our usury information accurate and up to date, its important that you check with a local attorney or accountant if you have any questions about the interest rate on your loan.

External Links on Usury


Alabama


Alaska


Arizona


Arkansas


California


Colorado


Connecticut


Delaware


District of Columbia

  • Interest Rate Limit

    Maximum legal interest rate is 24%

  • Exceptions

    There is no limit on an interest rate if the loan is greater than $1,000 and any of the following conditions apply:

    • The loan is not a mortgage
    • The borrower is a not for profit corporation
    • The loan is made for the purpose of acquiring or carrying on a business
    • The loan is made for the purpose of acquiring any real or personal property as an investment
  • More Information


Florida


Georgia

  • Interest Rate Limit
  • More Information


Hawaii


Idaho


Illinois


Indiana


Iowa

  • Interest Rate Limit

    Maximum legal interest rate on loans is 2% above the monthly average 10-year constant maturity interest rate of US government bonds. The Iowa Superintendent of Banking publishes the monthly maximum rate on their website.

  • Exceptions

    There is no limit on the interest rate if the loan purpose is for:

  • More Information


Kansas


Kentucky


Louisiana


Maine


Maryland

  • Interest Rate Limit

    Maximum legal interest rate on loans is 8%

  • Exceptions

    There are numerous exceptions to the maximum interest rate in Maryland. If you have any questions please contact a local attorney.

  • More Information


Massachusetts


Michigan


Minnesota


Mississippi


Missouri


Montana


Nebraska


Nevada


New Hampshire


New Jersey


New Mexico


New York


North Carolina


North Dakota


Ohio


Oklahoma


Oregon


Pennsylvania


Rhode Island


South Carolina


South Dakota


Tennessee


Texas


Utah


Vermont

  • Interest Rate Limit

    Maximum legal interest rate on loans is 12%

  • Exceptions

    For a loan secured by motor vehicles, mobile homes, travel trailers, aircraft, watercraft and farm equipment, of the current and previous model year, the maximum legal interest rate is 18%. For a loan secured by such collateral older than the current or previous model year, the maximum legal interest rate is 20%.

    For a second mortgage, the maximum legal interest rate is 18%.

  • More Information


Virginia


Washington


West Virginia


Wisconsin


Wyoming