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Usury Laws in Arkansas

Arkansas's constitution caps interest at 17% a year on loans not covered by its special rules for banks and governments, and the legal rate is 6% when a contract states no rate.

Last checked . General information, not legal advice.

Arkansas at a glance

Maximum agreed rate
17%
Applies to loans and contracts not covered by Sections 1 and 2 of Amendment 89. A contract above the limit is void as to principal and interest.
Legal rate (no rate agreed)
6%
Applies under a contract that does not specify a rate (Ark. Code 4-57-101(d)).

Sources

Last checked

The rules in Arkansas

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

Maximum agreed rate in Arkansas: 17%. Applies to loans and contracts not covered by Sections 1 and 2 of Amendment 89. A contract above the limit is void as to principal and interest.

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

Legal rate (no rate agreed) in Arkansas: 6%. Applies under a contract that does not specify a rate (Ark. Code 4-57-101(d)).

Where do the Arkansas usury laws come from?

The rules above come from Ark. Const. amend. 89, 2, Ark. Const. amend. 89, 3, Ark. Const. amend. 89, 6 and Ark. Code 4-57-101. Each source is linked on this page. We last checked them in October 2026.

Good to know

Loans by or to federally insured depository institutions based in Arkansas follow the maximum rate that applied to them under federal law (12 U.S.C. 1831u) on March 1, 2009 (Ark. Const. amend. 89, 2).

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.