State Usury Laws – maximum legal interest rates

Every state has a Usury Limit (the maximum legal interest rate). When creating a loan agreement, make sure to check the usury limit for the state in which your loan is being made. Your loan’s interest rate should not exceed the state’s usury limit.

We try to keep our usury information up to date but, it is always a good idea to double-check with a local attorney or accountant

These rates were updated 5/11/12

*FRDR= Federal Reserve Discount Rate – more info here

State(alphabetical) Maximum Legal Interest Rate Notes/Exceptions
 Alabama  8% principal loan balance over $2,000
 Alaska  10.5% express contract agreement can be 5% above legal rate
 Arizona  10% different rate contracted for in writing has no limit
 Arkansas  5% above current FRDR none found
 California consumer loans 10% /non-consumer loans 5% above the FRBSF Discount Rate none found
 Colorado consumer loans 12% /non-consumer loans 12% none found
 Connecticut  12% mortgage of real property greater than $50,000, 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.
 Delaware 5% above current FRDR 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
 Florida  loans < $500,000 18% /loans > $500,000 25%  none found
 Georgia  loans <$3,000 16%loans $3,000-$250,000 5%/month (must use simple interest)  none found
 Hawaii  personal loans 10%  none found
 Idaho  personal loans 12%  none found
 Illinois  personal loans 9%  none found
 Indiana  loans <$50,000 21%  none found
 Iowa  Iowa Superintendent of Banking determines Iowa monthly max rate no limit for purchasing real property or refinancing the purchase of real property, loans > $25,000 for constructing improvements on real property, loans > $25,000 for personal, family or household purposes, and loans for business or agricultural purposes
 Kansas  15%  loans secured by real estate is 1.5% above the yield of thirty-year fixed rate conventional home mortgages
 Kentucky loans < 15,000 is the lesser between 19% or 4% above current FRDR  no limit for loans > $15,000
 Louisiana  12%  adjustable rate mortgages is 17%
 Maine  No limit  none found
 Maryland  8%  numerous exceptions
 Massachusetts  20%  none found
 Michigan  7%  numerous exceptions
 Minnesota  8% loan < $100,000 for business or agricultural purposes 4.5% above the discount rate on 90-day commercial paper at the Minnesota Federal Reserve.
 Mississippi  greater of 10% and 5% of current FRDR loans greater than $2,500 for a business purpose is the greater of 15% and 5% above the FRDR at the time the loan is mademortgage is the greater of 10% and 5% above the 20 Year Constant Maturity Index of Long-Term United States Government Bond Yield
 Missouri greater of 10% and 3% above the long term United States government bond yield  none found
 Montana greater of 15% and 6% above the Wall Street Journal Prime Rate  none found
 Nebraska  16% see Nebraska Revised Statute 45-101.04.
 Nevada  no limit  none found
 New Hampshire  no limit  none found
 New Jersey  16%  none found
 New Mexico  No limit for written loan agreement  none found
 New York  16%  none found
 North Carolina  loans <$25,000 is greater of 16% and 6% above 6 Month US Treasury Bills no limit if loan > $25,000; no limit for mortgage loan > $10,000
 North Dakota  consumer loans/personal loans 5.5% above the 6 Month US Treasury Bills 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
 Ohio  loans < $100,000 is 8% no limit if the loan amount is greater than $100,000 or the loan is demand note and unsecured
 Oklahoma  10%  none found
 Oregon loans < $50,000 is the greater of 12% and 5% above the FRDR at the time the loan is made none found
 Pennsylvania  unsecured loans < $50,000 is 12% / loans > $50,000 is 36%  none found
 Rhode Island  21% or 9% above the Wall Street Journal Prime Rate none found
 South Carolina  No Limit  none found
 South Dakota  18%  none found
 Tennessee lesser of 24% and 4% above the Bank Prime Rate  none found
 Texas  10%  none found
 Utah  no limit  none found
 Vermont  12% loans 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%.
 Virginia  12% for a second mortgage, the maximum legal interest rate is 18%.
 Washington  greater of 12% and 4% above the 26 Week Treasury Bill  none found
 West Virginia  8%  limit for mortgage 9%
 Wisconsin  8%  limit for mortgage 9%
 Wyoming  8%  limit for mortgage 9%

 

Alabama

Interest Rate Limits

8% is the limit

Exception

principal loan balance over $2,000

More Information

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Alaska

Interest Rate Limits

10.5% is the limit

Exception

express contract agreement can be 5% above legal rate

More Information

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Arizona

Interest Rate Limits

10% is the limit

Exception

different rate contracted for in writing has no limit

More Information

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Arkansas

Interest Rate Limits

 5% above current FRDR

Exception

no exceptions

More Information

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California

Interest Rate Limits

consumer loans 10%non-consumer loans 5% above the FRBSF Discount Rate

Exception

no exceptions

More Information

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Colorado

Interest Rate Limits

consumer loans 12% ; non-consumer loans 12%

Exception

no exceptions

More Information

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Connecticut

Interest Rate Limits

12% is the limit

Exception

mortgage of real property greater than $50,000, 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.More Information

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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

More Information

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Florida

Interest Rate Limits

loans < $500,000 18%loans > $500,000 25%

Exception

no exceptions

More Information

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Georgia

Interest Rate Limits

loans <$3,000 16%loans $3,000-$250,000 5%/month (must use simple interest)

Exception

no exceptions

More Information

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Hawaii

Interest Rate Limits

personal loans 10%

Exception

no exceptions

More Information

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Idaho

Interest Rate Limits

personal loans 12%

Exception

no exceptions

More Information

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Illinois

Interest Rate Limits

personal loans 9%

Exception

no exceptions

More Information

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Indiana

Interest Rate Limits

loans <$50,000 21%

Exception

no exceptions

More Information

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Iowa

Interest Rate Limits

Iowa Superintendent of Banking determinesIowa monthly max rate

Exception

no limit for purchasing real property or refinancing the purchase of real property, loans > $25,000 for constructing improvements on real property, loans > $25,000 for personal, family or household purposes, and loans for business or agricultural purposes

More Information

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Kansas

Interest Rate Limits

15% is the limit

Exception

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

More Information

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Kentucky

Interest Rate Limits

loans < 15,000 is the lesser between 19% or 4% above current FRDR

Exception

no limit for loans > $15,000

More Information

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Louisiana

Interest Rate Limits

12% is the limit

Exception

adjustable rate mortgages is 17%

More Information

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Maine

Interest Rate Limits

no limit

Exception

no exceptions

More Information

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Maryland

Interest Rate Limits

8% is the limit

Exception

numerous exceptions

More Information

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Massachusetts

Interest Rate Limits

20% is the limit

Exception

no exceptions

More Information

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Michigan

Interest Rate Limits

7% is the limit

Exception

numerous exceptions

More Information

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Minnesota

Interest Rate Limits

8% is the limit

Exception

loan < $100,000 for business or agricultural purposes 4.5% above the discount rate on 90-day commercial paper at the Minnesota Federal Reserve.

More Information

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Mississippi

Interest Rate Limits

greater of 10% and 5% of current FRDR

Exception

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

More Information

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Missouri

Interest Rate Limits

greater of 10% and 3% above the long term United States government bond yield

Exception

no exceptions

More Information

back to the top

 

Montana

Interest Rate Limits

greater of 15% and 6% above the Wall Street Journal Prime Rate

Exception

no exceptions

More Information

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Nebraska

Interest Rate Limits

16% is the limit

Exception

see Nebraska Revised Statute 45-101.04.

More Information

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Nevada

Interest Rate Limits

no limit

Exception

no exceptions

More Information

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New Hampshire

Interest Rate Limits

no limit

Exception

no exceptions

More Information

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New Jersey

Interest Rate Limits

16% is the limit

Exception

no exceptions

More Information

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New Mexico

Interest Rate Limits

No limit for written loan agreement

Exception

no exceptions

More Information

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New York

Interest Rate Limits

16% is the limit

Exception

no exceptions

More Information

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North Carolina

Interest Rate Limits

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

Exception

no limit if loan > $25,000; no limit for mortgage loan > $10,000More Information

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North Dakota

Interest Rate Limits

consumer loans/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

More Information

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Ohio

Interest Rate Limits

loans < $100,000 is 8%

Exception

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

More Information

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Oklahoma

Interest Rate Limits

10% is the limit

Exception

no exceptions

More Information

Oregon

Interest Rate Limits

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

Exception

no exceptions

More Information

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Pennsylvania

Interest Rate Limits

unsecured loans < $50,000 is 12%; loans > $50,000 is 36%

Exception

no exceptions

More Information

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Rhode Island

Interest Rate Limits

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

Exception

no exceptions

More Information

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South Carolina

Interest Rate Limits

no limit

Exception

no exceptions

More Information

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South Dakota

Interest Rate Limits

18% is the limit

Exception

no exceptions

More Information

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Tennessee

Interest Rate Limits

lesser of 24% and 4% above the Bank Prime Rate

Exception

no exceptions

More Information

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Texas

Interest Rate Limits

10% is the limit

Exception

no exceptions

More Information

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Utah

Interest Rate Limits

no limit

Exception

no exceptions

More Information

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Vermont

Interest Rate Limits

12% is the limit

loans 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%.

Exception

no exceptions

More Information

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Virginia

Interest Rate Limits

12% is the limit

Exception

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

More Information

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Washington

Interest Rate Limits

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

Exception

no exceptions

More Information

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West Virginia

Interest Rate Limits

8% is the limit

Exception

limit for mortgage 9%

More Information

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Wisconsin

Interest Rate Limits

8% is the limit

Exception

limit for mortgage 9%

More Information

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Wyoming

Interest Rate Limits

8% is the limit

Exception

limit for mortgage 9%

More Information

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