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Usury Laws in Illinois

Illinois allows up to 9% a year in a written contract, sets a 5% legal rate, and makes knowingly charging an individual more than 20% a year the felony of criminal usury.

Last checked . General information, not legal advice.

Illinois at a glance

Maximum agreed rate
9% (written contract)
Banks, licensed lenders, loans to corporations and business loans are among the listed exceptions.
Legal rate (no rate agreed)
5%
Applies to loans or forbearances except as the Interest Act otherwise provides.
Criminal usury
Over 20% a year: Class 4 felony
Does not apply to licensed consumer installment lenders or loans permitted by the Interest Act or other Illinois law.

Sources

Last checked

The rules in Illinois

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

Maximum agreed rate in Illinois: 9% (written contract). Banks, licensed lenders, loans to corporations and business loans are among the listed exceptions.

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

Legal rate (no rate agreed) in Illinois: 5%. Applies to loans or forbearances except as the Interest Act otherwise provides.

When is charging high interest a crime in Illinois?

Criminal usury in Illinois: Over 20% a year: Class 4 felony. Does not apply to licensed consumer installment lenders or loans permitted by the Interest Act or other Illinois law.

Where do the Illinois usury laws come from?

The rules above come from 815 ILCS 205/1, 815 ILCS 205/4 and 720 ILCS 5/17-59. 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.