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Usury Laws in Louisiana

In Louisiana, conventional (agreed) interest cannot exceed 12% a year and must be in writing, and legal interest on judicial demands follows the judicial rate, which is 7.5% for 2026.

Last checked . General information, not legal advice.

Louisiana at a glance

Maximum agreed rate
12%
The rate must be fixed in writing. The limit does not apply to loans made for commercial or business purposes (R.S. 9:3500(D)).
Legal rate (no rate agreed)
7.5% (2026 judicial rate)
Judicial interest is reset each year at 3.25 points above the Federal Reserve discount rate (R.S. 13:4202).

Sources

Last checked

The rules in Louisiana

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

Maximum agreed rate in Louisiana: 12%. The rate must be fixed in writing. The limit does not apply to loans made for commercial or business purposes (R.S. 9:3500(D)).

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

Legal rate (no rate agreed) in Louisiana: 7.5% (2026 judicial rate). Judicial interest is reset each year at 3.25 points above the Federal Reserve discount rate (R.S. 13:4202).

Where do the Louisiana usury laws come from?

The rules above come from La. R.S. 9:3500 and La. R.S. 13:4202. Each source is linked on this page. We last checked them in October 2026.

Good to know

Interest paid above 12% may be sued for and recovered within two years of payment (R.S. 9:3500(C)(2)).

The judicial rate was 8.25% for 2025 and 7.50% for 2026, as published by the Office of Financial Institutions.

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.