What is the maximum interest rate that can be charged under usury law in most cases?

The maximum interest rate that can be charged under usury law, particularly in many jurisdictions, is often set at 24%. This limit is designed to protect borrowers from excessively high-interest rates that could lead to financial distress. Usury laws vary by state, but they essentially serve to cap how much interest lenders can charge on loans.

By establishing a maximum of 24%, usury laws help ensure that borrowing remains manageable for consumers, fostering responsible lending practices. This rate acknowledges the need for lenders to earn a return on their loans while balancing the protection of borrowers against predatory lending practices.

It's also worth noting that rates above this threshold can be legally challenged, which strengthens the position of consumers in financial transactions. In this context, understanding usury laws is crucial for real estate professionals to ensure compliance and advocate for the financial well-being of their clients.