What is a usury law?

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A usury law is a state law that specifies the maximum legal interest rate at which loans can be made. These laws are designed to protect borrowers from excessive interest rates and to prevent lenders from engaging in predatory lending practices. The legal maximum interest rate varies by state and can be affected by factors such as the type of loan, the borrower's credit score, and the lender's license status. In general, usury laws are meant to promote fair lending practices and financial stability.

What Is a Usury Law