Local Information


Just as laws vary from state to state, so do financial regulations. Every state in the US has unique rules stipulating how much interest an institution can charge for one loan. This maximum rate is also called a usury limit.As you establish the guidelines for paying back your loan, it is essential that you check on your state’s regulations regarding usury limits. If you find that the financial institution you used to establish the loan has exceeded the regulated usury limit, your loan’s legality may be called into question.Although this information is updated frequently, to the best of our abilities, you should always stay in touch with your attorney to ensure that you are receiving fair and manageable interest rates.

Check the list below to find specific information about your state.

  • Alabama
    • Alabama does stipulate an interest rate limit of eight percent if both parties sign a written agreement.
    • There is one exception to this rule. Loans with a principle balance exceeding $2,000 do not have the same usury limit.
  • Alaska
    • The usury limit in Alaska is 10.5 percent.
    • There is an exception to this rule. If a loan has a balance less than $25,000, the interest rate limit is at least five percent larger than the FRBSF rate of discount.
  • Arizona
    • The maximum interest rate limit is 30 percent across the board.
  • Arkansas
    • The maximum interest rate allowable by law is five percent above the Federal Reserve discount rate.
    • The exception to this limit is any consumer loan. In this case, there is a cap at 17 percent.
  • California
    • The usury limit for consumer loans is 12 percent whereas the limit for non-consumer loans is five percent above the discount rate determined by the FRBSF.
  • Colorado
    • For consumer loans, Colorado institutions may implement a 12 percent interest rate. The maximum legal rate for non-consumer loans is 45 percent.
  • Connecticut
    • The maximum interest rate for most loans is 12 percent.
    • Exceptions are made for real estate mortgages higher than $5,000.
    • Business loans that range from $10,000 to $250,000 are not to have an interest rate exceeding 17 percent above the Deposit Index.
  • Delaware
    • The interest rate limit may not exceed the Federal Reserve Discount Rate plus five percent.
    • For loans larger than $100,000 and lacking a secure mortgage, there is no limit.
  • District of Columbia
    • The interest rate may not exceed 24 percent.
    • Several exceptions to this limit apply to loans over $1,000 that are not mortgages for a borrower who is not a for-profit corporation. This also applies if the purpose of the loan is to maintain or build a business or to acquire investment property.
  • Florida
    • For personal loans lower than $500,000, the maximum interest rate is 18 percent.
    • The interest rate limit for personal loans more than $500,000 is 25 percent.
  • Georgia
    • Georgia’s maximum interest rate on loans lower than $3,000 is 16 percent.
    • Loans between $3,000 and $250,000 carry a simple interest of five percent per month.
  • Hawaii
    • Hawaiians can expect an interest rate of 12 percent on personal loans.
  • Idaho
    • The highest interest rate legal in Idaho is 12 percent on personal loans.
  • Illinois
    • The maximum interest rate in Illinois is nine percent for all personal loans.
  • Indiana
    • Loans less than $50,000 are subject to an interest rate of 21 percent.
  • Iowa
    • The maximum legal interest rate for Iowa borrowers is 12 percent.
    • Exceptions include loans for the purchase of property or business and agricultural purposes. Loans higher than $25,000 for household purposes or real estate improvements are also given no limit.
  • Kansas
    • Borrowers in Kansas can expect an interest rate of 15 percent.
    • Real estate loans are assigned a special interest rate of 1.5 percent higher than the thirty-year fixed rate of the mortgage.
  • Kentucky
    • Loans less than $15,000 are assigned either 19 percent of four percent above the Federal Reserve Discount Rate, whichever number is lower.
    • Loans greater than $15,000 are not assigned an interest rate limit.
  • Louisiana
    • The maximum interest rate on loans in Louisiana is 12 percent.
    • Adjustable rate mortgage interest rate limits are 17 percent.
  • Maine
    • Loans have a legal interest rate limit of 18 percent.
  • Maryland
    • The maximum interest rate is 24 percent.
    • Maryland has several exceptions to this rule. This is one situation where you may want to contact your attorney to discuss maximum rates.
  • Massachusetts
    • The maximum interest rate is 20 percent.
  • Michigan
    • Borrowers can expect an interest rate of seven percent.
    • Michigan has many exceptions to this rule. In many cases, the limit is increased to 25 percent.
  • Minnesota
    • The interest rate limit is eight percent.
    • Loans less than $100,000 for business and agricultural gains are assigned an interest rate 4.5 percent above the state’s Federal Reserve discount rate.
  • Mississippi
    • The maximum legal interest rate is either 10 percent of five percent above the Federal Reserve Discount Rate, whichever is larger.
    • Business loans greater than $2,500 are assigned a maximum interest rate of either 15 percent or five percent above the Federal Reserve Discount Rate, whichever is greater.
    • Mortgages are assigned either a 10 percent interest rate or five percent above the 20 Year Constant Maturity Index of Long-Term United States Government Bond Yields, whichever number is larger.
  • Missouri
    • The maximum interest rate is either 10 percent or three percent above long-term US government bond yields, whichever rate is higher.
    • There may be exceptions in rare circumstances. Speak to a local attorney to learn more.
  • Montana
    • The maximum interest rate will be either 15 percent or six percent above the Wall Street Journal’s Prime Rate, whichever number is greater.
  • Nebraska
    • The maximum interest rate is 16 percent.
    • The Nebraska Revised Statute lists several exceptions to this interest rate regulation.
  • Nevada
    • Nevada is one of the rare states in which there is no regulated maximum interest rate.
  • New Hampshire
    • All loans are subject to a 10 percent maximum interest rate.
  • New Jersey
    • The maximum interest rate is 16 percent.
  • New Mexico
    • The maximum interest rate is 15 percent.
  • New York
    • The maximum interest rate is 16 percent.
  • North Carolina
    • Loans less than $25,000 are subject to an interest rate of either 16 percent or six percent above the Six Month US Treasury Bills, whichever is greater.
    • Exceptions apply to loans greater than $25,000 and mortgages greater than $10,000. In these cases, no interest rate limit applies.
  • North Dakota
    • The maximum interest rate for loans of $35,000 or less is either 16 percent or six percent above the Six Month US Treasury Bills regulation, whichever is higher.
    • No legal interest rate limit applies for loans more than $35,000 or loans for partnerships or limited partnerships.
  • Ohio
    • The maximum interest rate on most loans is 21 percent.
    • No interest rate applies to loans greater than $100,000 or unsecured demand notes.
    • Mortgages have a maximum interest rate of eight percent above the Federal Reserve Discount Rate.
  • Oklahoma
    • The maximum legal interest rate on all loans is 10 percent.
  • Oregon
    • Loans less than $50,000 are assessed an interest rate of either 12 percent or five percent above the Federal Reserve Discount Rate, whichever is greater.
    • Secured property loans and loans from qualified retirement plans are not given a regulated limit.
  • Pennsylvania
    • The interest rate limit is six percent.
  • Rhode Island
    • The highest legal interest rate is 21 percent for all loans.
  • South Carolina
    • The interest rate limit is 21 percent.
  • South Dakota
    • All loans are assigned a maximum interest rate of 30 percent.
  • Tennessee
    • The interest rate limit is either 24 percent or four percent above the Bank Prime Rate, whichever is smaller.
    • An exception is made for single payment loans of one year or less if the principal amount is less than $1,000. This maximum interest rate is 10 percent.
  • Texas
    • The maximum interest rate is six percent.
  • Utah
    • The maximum interest rate is 10 percent.
  • Vermont
    • The maximum interest rate is 12 percent.
    • Loans secured with vehicles or work equipment made within the last two years are assigned an interest rate of 18 percent.
    • If the borrower secures a loan with older collateral, the maximum interest rate is 20 percent.
    • Second mortgages are assigned an interest rate of 18 percent.
  • Virginia
    • The interest rate limit is eight percent.
    • Second mortgages are assigned a maximum rate of 18 percent.
  • Washington
    • The interest rate limit is either 12 percent or four percent above the rate designated by the 26 Week Treasury Bill, whichever is higher.
  • West Virginia
    • The interest rate is eight percent.
    • The interest rate for a mortgage is nine percent.
  • Wisconsin
    • The maximum interest rate is five percent.
  • Wyoming
    • The maximum interest rate is 10 percent.

If you have any further questions, please refer to the FAQ section, or get in touch with Willow Loans via the contact page.

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