Usury Laws in Hawaii

Hawaii caps consumer credit and home business loans at 12% a year, sets a 10% legal rate when no written rate exists, and makes knowingly receiving usurious interest a crime.

Last checked October 2026. General information, not legal advice.

Maximum agreed rate: 12% (consumer loans); Applies to consumer credit transactions and home business loans. Other transactions may carry any rate not otherwise prohibited by law.
Legal rate (no rate agreed): 10%; Applies when no express written contract fixes a different rate. Judgments also bear 10%.
Criminal usury: Any usurious rate: fine up to $250, jail up to 1 year; Applies to anyone who receives interest above the rate permitted by law on any credit transaction.

Sources

Last checked October 2026

The rules in Hawaii

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

Maximum agreed rate in Hawaii: 12% (consumer loans). Applies to consumer credit transactions and home business loans. Other transactions may carry any rate not otherwise prohibited by law.

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

Legal rate (no rate agreed) in Hawaii: 10%. Applies when no express written contract fixes a different rate. Judgments also bear 10%.

When is charging high interest a crime in Hawaii?

Criminal usury in Hawaii: Any usurious rate: fine up to $250, jail up to 1 year. Applies to anyone who receives interest above the rate permitted by law on any credit transaction.

Where do the Hawaii usury laws come from?

The rules above come from HRS 478-2, HRS 478-3, HRS 478-4, HRS 478-5 and HRS 478-6. Each source is linked on this page. We last checked them in October 2026.

Good to know

On a usurious consumer contract the creditor recovers only the principal (HRS 478-5).

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.