Usury - Interest rate charged above the legal limit

Usury is an interest rate which is charged over the limit established by law. The usury limit which is stated can be charged by one person or corporation to another.

For example, suppose the legal rate established by law is 3%, and John, a lender, charged Carole 5% interest rate. This 5% interest rate is known as 'usury'.

Recently, states have enacted a law that limits the usury to current market rates but earlier what prevailed was the flat rate. Sometimes interest is directly imposed on the amount charged for goods and services. In some cases, sellers charge a certain price for cash sale, and a higher price for credit sale on similar goods.

However the transaction laws vary from state to state. There are states which follow a "legal interest rate". In such states the legal rate is applied if any contractual obligation provides for interest without a specific term, or "interest at the highest legal rate". But there are other states that use a "judgment rate" which is normally associated with final judgments. In states having no usury, there may still be a limit imposed by the federal government.

A state-wise list of the usury rates, legal rates and judgment rate are given below.

State	Legal Rate	Usury Limit	Judgment Rate
Alabama	6%	8%	12%
Alaska	10.5%	More than 5% above the Federal Reserve interest rate on the day the loan was made.	-
Arizona	10%	-	-
Arkansas	6%	For Non-Consumer the limit is 5% above the Federal Reserve's interest rate and for consumers is 17%.	10%
California	10%	For Non-Consumer the limit is 5% above the Federal Reserve Bank of San-Fransico rate.	-
Colorado	8%	45%	-
Connecticut	8%	12%	-
Delaware	5% over the Federal Reserve rate.	-	-
District of Columbia	6%	In excess of 24%	-
Florida	12%	18% On loan amount above $ 2,50,000 - 25%	-
Georgia	7%	On loan amount below $ 3,000 - 16% On loan amount above $ 3,000 - 5%	-
Hawaii	10%	12%	-
Idaho	12%	-	5% above the US Treasury security rate.
Illinois	5%	9%	9%
Indiana	10%	-	10%
10%	12%	-
Kansas	10%	15%	4% above Federal discount rate.
Kentuchy	8%	4% more than Federal Reserve rate or 19% whichever is less On loan above $ 15,000 - No limit	12%
Lousiana	Not exceed 14% nor less than 7%	12 % for individual and no limit for corporations.	-
Maine	5%	-	Below $30,000 - 15% or 52 week average discount rate for T-Bill, plus 4%.
Maryland	6%	24%	10%
Massachusetts	6%	20%	12%
Michigan	5%	7%	5% above the 5 year T-Note rate.
Minnesota	6%	8%	-
Mississipi	9%	More than 10% or more than 5% above the Federal Reserve rate	9%
Missouri	9%	-	9%
Montana	10%	6%	10%
Nebraska	6%	16%	1% above a bond yield equivalent to T-bill.
Nevada	12%	No limit	-
New Hampshire	10%	No limit	-
New Jersey	6%	30% for individual and 50% for corporation	-
New Mexico	15%	-	Fixed by the court
New York	9%	16%	-
North Carolina	8%	8%	-
North Dakorta	16%	5 1/2% above 6 months treasury bill rate	Contract rate or 12%, whichever is less.
Oklahoma	6%	Consumer loan - Not exceed 10% Non-consumer loan - Not exceed 45%	T-Bill rate plus 4%
Oregon	9%	Loan above $ 50,000 - 12 % or 5% above the discount rate for commercial paper.	9% or contract rate, whichever is higher.
Pennsylvania	6%	25%	6%
Puerto Rico	6%	-	6%
Rhode Island	12%	21% or Interest rate charged for T-Bill plus 9%	21%
South Carolina	8.75%	-	14%
South Dakota	15%	No Limit	12%
Tennessee	10%	24%	10%
Texas	6%	-	18% or contract rate, whichever is less.
Utah	10%		12%
Vermont	12%	12%	12%
Virgina	8%	No Limit	8%
Washington	12%	12%	12%
West Virgina	6%	Based on Market rate	-
Wisconsin	5%	No limit	12%
Wyoming	10%	-	10%