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Usury Laws in Georgia

Georgia caps loans of $3,000 or less at 16% a year, lets parties agree in writing to any rate on larger loans, sets a 7% legal rate, and makes charging over 5% a month a misdemeanor.

Last checked . General information, not legal advice.

Georgia at a glance

Maximum agreed rate
16% (loans of $3,000 or less)
Above $3,000, parties may set any rate by written contract, subject to the 5% a month criminal limit in O.C.G.A. 7-4-18.
Legal rate (no rate agreed)
7%
Simple interest when no rate is set by written contract. Judgments bear the prime rate plus 3%.
Criminal usury
Over 5% a month: misdemeanor
Applies to any loan or advance of money; licensed pawnbrokers follow their own limits.

Sources

Last checked

The rules in Georgia

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

Maximum agreed rate in Georgia: 16% (loans of $3,000 or less). Above $3,000, parties may set any rate by written contract, subject to the 5% a month criminal limit in O.C.G.A. 7-4-18.

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

Legal rate (no rate agreed) in Georgia: 7%. Simple interest when no rate is set by written contract. Judgments bear the prime rate plus 3%.

When is charging high interest a crime in Georgia?

Criminal usury in Georgia: Over 5% a month: misdemeanor. Applies to any loan or advance of money; licensed pawnbrokers follow their own limits.

Where do the Georgia usury laws come from?

The rules above come from O.C.G.A. 7-4-2, O.C.G.A. 7-4-10, O.C.G.A. 7-4-12 and O.C.G.A. 7-4-18. Each source is linked on this page. We last checked them in October 2026.

Good to know

A lender who violates O.C.G.A. 7-4-2 forfeits the entire interest charged (O.C.G.A. 7-4-10).

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.