State Usury Laws
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.
Be advised that you should always check with your attorney and accountant when making financial decisions and do not solely rely on the information provided on this website as some may not be accurate and/or out of date.
External Links on Usury
Alabama
- Interest Rate Limit
Maximum legal interest rate is 8% if there is a written loan agreement
- Exceptions
Loans with an original principal balance over $2,000
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Alaska
- Interest Rate Limit
Maximum legal interest rate is 10.5%
- Exceptions
If the original balance of the loan is less than $25,000, the maximum legal interest rate is more than 5% above the FRBSF Discount Rate at the time the loan is made.
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Arizona
- Interest Rate Limit
Maximum legal interest rate is 10% unless a different rate is contracted for in writing, in which event any rate of interest may be agreed to.
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Arkansas
- Interest Rate Limit
Maximum legal interest rate is 5% above the Federal Reserve Discount Rate at the time the loan is made
- Exceptions
The maximum legal interest rate for consumer loans is capped at 17%.
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California
- Interest Rate Limit
- Maximum legal interest rate for consumer loans is 10%
- Maximum legal interest rate for non-consumer loans is 5% above the FRBSF Discount Rate at the time the loan is made.
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Colorado
- Interest Rate Limit
- Maximum legal interest rate for non-consumer loans is 45%
- Maximum legal interest rate for consumer loans is 12%
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Connecticut
- Interest Rate Limit
Maximum legal interest rate is 12%
- Exceptions
- A mortgage of real property greater than $5,000
- 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 Limit
Maximum legal interest rate is 5% above the Federal Reserve Discount Rate at the time the loan is made.
- Exceptions
There is 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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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
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Florida
- Interest Rate Limit
- Maximum legal interest rate on personal loans less than $500,000 is 18%
- Maximum legal interest rate on personal loans greater than $500,000 is 25%
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Georgia
- Interest Rate Limit
- Maximum legal interest rate on loans equal to $3,000 or less is 16%
- Maximum legal interest rate on loans between $3,000 and $250,000 is 5% per month and must use simple interest
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Hawaii
- Interest Rate Limit
Maximum legal interest rate on personal loans is 10%
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Idaho
- Interest Rate Limit
Maximum legal interest rate on personal loans is 12%
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Illinois
- Interest Rate Limit
Maximum legal interest rate on personal loans is 9%
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Indiana
- Interest Rate Limit
Maximum legal interest rate on loans less than $50,000 or less is 21%
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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:
- Purchasing real property or refinancing the purchase of real property
- A loan greater than $25,000 for constructing improvements on real property
- A loan greater than $25,000 for personal, family, or household purposes
- A loan for business or agricultural purposes
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Kansas
- Interest Rate Limit
Maximum legal interest rate on loans is 15%
- Exceptions
Maximum legal interest rate on loans secured by real estate is 1.5% above the yield of thirty-year fixed rate conventional home mortgages. The Kansas Secretary of State publishes this rate on their website.
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Kentucky
- Interest Rate Limit
Maximum legal interest rate on loans less than $15,000 is the lesser of:
- 19%
- 4% above the Federal Reserve Discount Rate at the time the loan is made.
- Exceptions
There is no limit on loans greater than $15,000
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Louisiana
- Interest Rate Limit
Maximum legal interest rate on loans is 12%
- Exceptions
Maximum legal interest rate on adjustable rate mortgages is 17%
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Maine
- Interest Rate Limit
No limit
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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.
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Massachusetts
- Interest Rate Limit
Maximum legal interest rate on loans is 20%
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Michigan
- Interest Rate Limit
Maximum legal interest rate on loans is 7%
- Exceptions
There are numerous exceptions that raise the maximum legal interest rate to 25% that are detailed in the Michigan Statutory Interest Rate Ceilings (PDF).
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Minnesota
- Interest Rate Limit
Maximum legal interest rate on loans is 8%
- Exceptions
The maximum legal interest rate for a loan of less than $100,000 for business or agricultural purposes 4.5% above the discount rate on 90-day commercial paper at the Minnesota Federal Reserve.
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Mississippi
- Interest Rate Limit
Maximum legal interest rate on loans is the greater of:
- 10%
- 5% above the Federal Reserve Discount Rate at the time the loan is made.
- Exceptions
- The maximum legal interest rate on loans greater than $2,500 for a business purpose is the greater of:
- 15%
- 5% above the Federal Reserve Discount Rate at the time the loan is made.
- The maximum legal interest rate on a mortgage is the greater of:
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Missouri
- Interest Rate Limit
The maximum legal interest rate on loans is the greater of:
- Exceptions
Note I can’t find any exceptions, but virgin money shows multiple exceptions
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Montana
- Interest Rate Limit
The maximum legal interest rate on loans is the greater of:
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Nebraska
- Interest Rate Limit
Maximum legal interest rate on loans 16%
- Exceptions
There are multiple exceptions to the maximum legal interest that can be found in Nebraska Revised Statute 45-101.04.
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Nevada
- Interest Rate Limit
No limit
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New Hampshire
- Interest Rate Limit
No limit
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New Jersey
- Interest Rate Limit
Maximum legal interest rate on loans 16%
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New Mexico
- Interest Rate Limit
No limit with written loan agreement
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New York
- Interest Rate Limit
Maximum legal interest rate on loans is 16%
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North Carolina
- Interest Rate Limit
Maximum legal interest rate on loans less than $25,000 is the greater of:
- Exceptions
There is no interest rate limit if:
- The loan amount is greater than $25,000
- The loan is a mortgage and the amount is greater than $10,000
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North Dakota
- Interest Rate Limit
Maximum legal interest rate on loans less than $35,000 is 5.5% above the 6 Month US Treasury Bills
- Exceptions
There is no maximum legal interest rate on loans if:
- The loan amount is greater than $35,000
- 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 Limit
Maximum legal interest rate on loans less than $100,000 is 8%
- Exceptions
There is no interest rate limit if:
- The loan amount is greater than $100,000
- The loan is demand note and unsecured
The maximum legal interest rate for a mortgage is 8% above FR Discount Rate at the time of the loan.
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Oklahoma
- Interest Rate Limit
Maximum legal interest rate on loans is 10%
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Oregon
- Interest Rate Limit
Maximum legal interest rate on loans less than $50,000 is the greater of:
- 12%
- 5% above the FR Discount Rate at the time the loan is made
- Exceptions
There is no interest rate limit if:
- The loan is secured by real property
- The loan is from a tax qualified retirement plan to a person then a participant under the plan
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Pennsylvania
- Interest Rate Limit
Maximum legal interest rate on unsecured loans less than $50,000 is 12%
Maximum legal interest rate on loans over than $50,000 is 36%
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Rhode Island
- Interest Rate Limit
Maximum legal interest rate on loans is:
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South Carolina
- Interest Rate Limit
No limit
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South Dakota
- Interest Rate Limit
Maximum legal interest rate on loans is 18%
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Tennessee
- Interest Rate Limit
Maximum legal interest rate on loans is the lesser of:
- Exceptions
The maximum legal interest rate for a single payment loan with a term of one year or less and principal amount of $1,000 or less is 10%
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Texas
- Interest Rate Limit
Maximum legal interest rate on loans is 10%
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Utah
- Interest Rate Limit
No limit
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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%.
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Virginia
- Interest Rate Limit
Maximum legal interest rate on loans is 12%
- Exceptions
For a second mortgage, the maximum legal interest rate is 18%.
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Washington
- Interest Rate Limit
Maximum legal interest rate on loans is the greater of:
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West Virginia
- Interest Rate Limit
Maximum legal interest rate on loans is 8%
Maximum legal interest rate on a mortgage is 9%
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Wisconsin
- Interest Rate Limit
Maximum legal interest rate on loans is 8%
Maximum legal interest rate on a mortgage is 9%
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Wyoming
- Interest Rate Limit
Maximum legal interest rate on loans is 8%
Maximum legal interest rate on a mortgage is 9%
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