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Usury Laws in Massachusetts

In Massachusetts, parties may agree to any rate in writing, the legal rate is 6% when none was agreed, and knowingly charging interest and expenses above 20% a year is criminal usury unless the lender has notified the Attorney General.

Last checked . General information, not legal advice.

Massachusetts at a glance

Maximum agreed rate
No civil cap (over 20% is criminal)
Civil law allows any agreed rate, but interest and expenses above 20% a year are criminal usury unless the lender has notified the Attorney General.
Legal rate (no rate agreed)
6%
A rate above 6% can be recovered in court only if the agreement to pay it is in writing.
Criminal usury
Over 20% a year: up to 10 years and $10,000 fine
Counts interest and expenses together. A court may declare the loan void. Lenders who notify the Attorney General and keep records are exempt.

Sources

Last checked

The rules in Massachusetts

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

Maximum agreed rate in Massachusetts: No civil cap (over 20% is criminal). Civil law allows any agreed rate, but interest and expenses above 20% a year are criminal usury unless the lender has notified the Attorney General.

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

Legal rate (no rate agreed) in Massachusetts: 6%. A rate above 6% can be recovered in court only if the agreement to pay it is in writing.

When is charging high interest a crime in Massachusetts?

Criminal usury in Massachusetts: Over 20% a year: up to 10 years and $10,000 fine. Counts interest and expenses together. A court may declare the loan void. Lenders who notify the Attorney General and keep records are exempt.

Where do the Massachusetts usury laws come from?

The rules above come from Mass. Gen. Laws ch. 107, 3 and Mass. Gen. Laws ch. 271, 49. 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.