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Usury Laws in New Jersey

In New Jersey, the civil usury limit is 16% a year with a written contract and 6% without one, and charging more than 30% (50% for corporations and LLCs) is criminal usury.

Last checked . General information, not legal advice.

New Jersey at a glance

Maximum agreed rate
16% (written contract)
Loans of $50,000 or more (other than certain home mortgages) may carry any agreed rate.
Legal rate (no rate agreed)
6%
Applies when there is no written contract specifying a rate.
Criminal usury
Over 30% a year (50% for corporations, LLCs, LLPs)
Second degree crime above 50%. Third degree for loans over $1,000 to non-business borrowers at up to 50%. Otherwise a disorderly persons offense.

Sources

Last checked

The rules in New Jersey

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

Maximum agreed rate in New Jersey: 16% (written contract). Loans of $50,000 or more (other than certain home mortgages) may carry any agreed rate.

What interest rate applies in New Jersey when no rate was agreed?

Legal rate (no rate agreed) in New Jersey: 6%. Applies when there is no written contract specifying a rate.

When is charging high interest a crime in New Jersey?

Criminal usury in New Jersey: Over 30% a year (50% for corporations, LLCs, LLPs). Second degree crime above 50%. Third degree for loans over $1,000 to non-business borrowers at up to 50%. Otherwise a disorderly persons offense.

Where do the New Jersey usury laws come from?

The rules above come from N.J. Stat. 31:1-1 and N.J. Stat. 2C:21-19. 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.