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Usury Laws in Colorado

Colorado's legal rate is 8% a year, written agreements can set up to 45% a year, and knowingly charging more than 45% is the felony of criminal usury.

Last checked . General information, not legal advice.

Colorado at a glance

Maximum agreed rate
45%
Applies to rates stipulated in a written instrument; interest includes all charges imposed as an incident to the credit.
Legal rate (no rate agreed)
8%
Compounded annually when there is no agreement or law setting a different rate.
Criminal usury
Over 45% a year: class 6 felony
Knowingly charging a loan finance charge above 45% APR is criminal usury, subject to listed defenses and exemptions.

Sources

Last checked

The rules in Colorado

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

Maximum agreed rate in Colorado: 45%. Applies to rates stipulated in a written instrument; interest includes all charges imposed as an incident to the credit.

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

Legal rate (no rate agreed) in Colorado: 8%. Compounded annually when there is no agreement or law setting a different rate.

When is charging high interest a crime in Colorado?

Criminal usury in Colorado: Over 45% a year: class 6 felony. Knowingly charging a loan finance charge above 45% APR is criminal usury, subject to listed defenses and exemptions.

Where do the Colorado usury laws come from?

The rules above come from C.R.S. 5-12-101, C.R.S. 5-12-103 and C.R.S. 18-15-104. Each source is linked on this page. We last checked them in October 2026.

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.