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Usury Laws in New Mexico

In New Mexico, interest without a written contract fixing a rate may not exceed 15% a year, and judgments generally bear 8.75%.

Last checked . General information, not legal advice.

New Mexico at a glance

Legal rate (no rate agreed)
Up to 15% (no written rate)
Applies absent a written contract fixing a different rate. Judgments generally bear 8.75% (NMSA 56-8-4).
Criminal usury
Over the legal limits: misdemeanor, $25 to $100 fine
Applies to charging interest above the rates permitted by NMSA 56-8-1 to 56-8-21 (NMSA 56-8-9, 56-8-14).

Sources

Last checked

The rules in New Mexico

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

Legal rate (no rate agreed) in New Mexico: Up to 15% (no written rate). Applies absent a written contract fixing a different rate. Judgments generally bear 8.75% (NMSA 56-8-4).

When is charging high interest a crime in New Mexico?

Criminal usury in New Mexico: Over the legal limits: misdemeanor, $25 to $100 fine. Applies to charging interest above the rates permitted by NMSA 56-8-1 to 56-8-21 (NMSA 56-8-9, 56-8-14).

Where do the New Mexico usury laws come from?

The rules above come from N.M. Stat. 56-8-3, N.M. Stat. 56-8-4, N.M. Stat. 56-8-9 and N.M. Stat. 56-8-14. Each source is linked on this page. We last checked them in October 2026.

Good to know

Usury limits do not apply where a corporation or other business entity is the debtor (NMSA 56-8-9).

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.