Usury Laws in Alaska

Alaska's legal rate is 10.5% a year, and agreed rates on loans of $25,000 or less cannot exceed the greater of 10% or 5 points above the Federal Reserve rate.

Last checked October 2026. General information, not legal advice.

Maximum agreed rate: Greater of 10% or Fed rate plus 5 points; Cap is the greater of 10% or 5 points above the 12th Federal Reserve District advance rate on the contract date. Loans over $25,000 are exempt.
Legal rate (no rate agreed): 10.5%; Applies to money after it is due when no rate was agreed.

Sources

Last checked October 2026

The rules in Alaska

What is the maximum interest rate on a private loan in Alaska?

Maximum agreed rate in Alaska: Greater of 10% or Fed rate plus 5 points. Cap is the greater of 10% or 5 points above the 12th Federal Reserve District advance rate on the contract date. Loans over $25,000 are exempt.

What interest rate applies in Alaska when no rate was agreed?

Legal rate (no rate agreed) in Alaska: 10.5%. Applies to money after it is due when no rate was agreed.

Where do the Alaska usury laws come from?

The rules above come from AS 45.45.010, AS 45.45.030 and AS 45.45.040. Each source is linked on this page. We last checked them in October 2026.

Good to know

A borrower who paid usurious interest can sue within two years to recover double the interest paid, and a usurious rate forfeits the entire interest (AS 45.45.030, 45.45.040).

What this means in practice

Put the interest rate in writing. Many usury statutes set one limit for written agreements and a different, often lower, rate when nothing was agreed in writing. A signed promissory note or loan agreement that states the rate, the payment schedule and what happens on late payment avoids most disputes.

Count every charge, not only the stated rate. Courts may treat fees, points, required extras or a discount taken from the amount lent as interest when deciding whether a loan is usurious. A loan with a modest rate and large fees can still cross the limit.

Check who the lender is and what the loan is for. Usury limits often do not apply, or apply differently, to banks, licensed consumer lenders, credit card issuers, larger loans and loans to businesses or corporations. A rule written for loans between individuals may not cover your situation, so read the statute and its exceptions.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.