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Usury Laws in Delaware

Delaware caps agreed interest at 5% over the Federal Reserve discount rate, uses the same figure as the legal rate when no rate was agreed, and lifts the cap for unsecured loans over $100,000.

Last checked . General information, not legal advice.

Delaware at a glance

Maximum agreed rate
Fed discount rate plus 5 points
No limit on loans over $100,000 not secured by a mortgage on the borrower's principal residence.
Legal rate (no rate agreed)
Fed discount rate plus 5 points
Measured as of the time interest is due.

Sources

Last checked

The rules in Delaware

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

Maximum agreed rate in Delaware: Fed discount rate plus 5 points. No limit on loans over $100,000 not secured by a mortgage on the borrower's principal residence.

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

Legal rate (no rate agreed) in Delaware: Fed discount rate plus 5 points. Measured as of the time interest is due.

Where do the Delaware usury laws come from?

The rules above come from 6 Del. C. 2301, 6 Del. C. 2304 and 6 Del. C. 2306. Each source is linked on this page. We last checked them in October 2026.

Good to know

A borrower need not pay interest above the lawful rate and, after paying the debt, may sue within 1 year for 3 times the excess interest or $500, whichever is greater (6 Del. C. 2304). Corporations and LLCs cannot raise the usury defense (6 Del. C. 2306).

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.