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Usury Laws in Arizona

Arizona lets parties agree in writing to any interest rate; without a written rate, interest is 10% a year, and medical debt is capped at 3% or less.

Last checked . General information, not legal advice.

Arizona at a glance

Maximum agreed rate
No cap (any rate agreed in writing)
Any rate may be agreed in writing for debts other than medical debt. Medical debt is capped at the lesser of 3% or the one-year Treasury yield.
Legal rate (no rate agreed)
10%
Judgments without a contract rate bear the lesser of 10% or prime plus 1 point.

Sources

Last checked

The rules in Arizona

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

Maximum agreed rate in Arizona: No cap (any rate agreed in writing). Any rate may be agreed in writing for debts other than medical debt. Medical debt is capped at the lesser of 3% or the one-year Treasury yield.

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

Legal rate (no rate agreed) in Arizona: 10%. Judgments without a contract rate bear the lesser of 10% or prime plus 1 point.

Where do the Arizona usury laws come from?

The rules above come from A.R.S. 44-1201. Each source is linked on this page. We last checked them in October 2026.

Good to know

Since the medical debt amendment, A.R.S. 44-1201 caps interest on medical debt and judgments on medical debt at the lesser of 3% a year or the weekly average one-year Treasury yield.

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.