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Usury Laws in Connecticut

Connecticut caps most loans at 12% a year, sets an 8% legal rate when nothing was agreed, and makes lending above 12% punishable by a fine of up to $1,000 and up to 6 months in jail.

Last checked . General information, not legal advice.

Connecticut at a glance

Maximum agreed rate
12%
Banks, credit unions, real estate mortgages over $5,000, certain business loans and other listed loans are exempt (Conn. Gen. Stat. 37-9).
Legal rate (no rate agreed)
8%
Applies in the absence of any agreement to the contrary.
Criminal usury
Over 12%: fine up to $1,000, jail up to 6 months
Applies to violations of the 12% cap and related rules; no action may be brought to recover principal or interest on a prohibited loan.

Sources

Last checked

The rules in Connecticut

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

Maximum agreed rate in Connecticut: 12%. Banks, credit unions, real estate mortgages over $5,000, certain business loans and other listed loans are exempt (Conn. Gen. Stat. 37-9).

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

Legal rate (no rate agreed) in Connecticut: 8%. Applies in the absence of any agreement to the contrary.

When is charging high interest a crime in Connecticut?

Criminal usury in Connecticut: Over 12%: fine up to $1,000, jail up to 6 months. Applies to violations of the 12% cap and related rules; no action may be brought to recover principal or interest on a prohibited loan.

Where do the Connecticut usury laws come from?

The rules above come from Conn. Gen. Stat. 37-1, Conn. Gen. Stat. 37-4, Conn. Gen. Stat. 37-7, Conn. Gen. Stat. 37-8 and Conn. Gen. Stat. 37-9. 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.