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Usury Laws in Montana

In Montana, the legal rate is 10% a year, and parties may agree in writing to up to the greater of 15% or 6 points above the prime rate.

Last checked . General information, not legal advice.

Montana at a glance

Maximum agreed rate
15% (or prime plus 6 points, if higher)
15% is the floor; the cap is higher when prime plus 6 points exceeds it. Regulated lenders are excluded.
Legal rate (no rate agreed)
10%
Judgments bear the prime rate plus 3%, or the contract rate (MCA 25-9-205).

Sources

Last checked

The rules in Montana

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

Maximum agreed rate in Montana: 15% (or prime plus 6 points, if higher). 15% is the floor; the cap is higher when prime plus 6 points exceeds it. Regulated lenders are excluded.

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

Legal rate (no rate agreed) in Montana: 10%. Judgments bear the prime rate plus 3%, or the contract rate (MCA 25-9-205).

Where do the Montana usury laws come from?

The rules above come from Mont. Code Ann. 31-1-106, Mont. Code Ann. 31-1-107 and Mont. Code Ann. 25-9-205. 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.