Usury Laws in the District of Columbia
The District of Columbia allows up to 24% a year in a written agreement, sets a 6% rate when no rate was agreed, and makes willful violations a crime punishable by up to 1 year in jail.
Last checked . General information, not legal advice.
District of Columbia at a glance
- Maximum agreed rate
- 24% (written agreement)
- An oral agreement above 6% is usurious. Some business, investment and nonprofit loans over $2,500 are exempt.
- Legal rate (no rate agreed)
- 6%
- Applies in the absence of an expressed contract.
- Criminal usury
- Willful violation: up to 1 year in jail and a fine
- Applies to any lender who wilfully violates the interest and usury chapter.
The rules in the District of Columbia
What is the maximum interest rate on a private loan in the District of Columbia?
Maximum agreed rate in the District of Columbia: 24% (written agreement). An oral agreement above 6% is usurious. Some business, investment and nonprofit loans over $2,500 are exempt.
What interest rate applies in the District of Columbia when no rate was agreed?
Legal rate (no rate agreed) in the District of Columbia: 6%. Applies in the absence of an expressed contract.
When is charging high interest a crime in the District of Columbia?
Criminal usury in the District of Columbia: Willful violation: up to 1 year in jail and a fine. Applies to any lender who wilfully violates the interest and usury chapter.
Where do the the District of Columbia usury laws come from?
The rules above come from D.C. Code 28-3301, D.C. Code 28-3302, D.C. Code 28-3303 and D.C. Code 28-3313. Each source is linked on this page. We last checked them in October 2026.
Good to know
A usurious creditor forfeits the whole of the interest (D.C. Code 28-3303).
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.
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