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Usury Laws in New York

In New York, the civil usury limit is 16% a year, knowingly charging more than 25% is criminal usury, and the statutory rate on judgments and claims is 9% (2% on consumer debt judgments against individuals).

Last checked . General information, not legal advice.

New York at a glance

Maximum agreed rate
16%
Civil limits do not apply to loans of $250,000 or more (other than one or two family home loans); no limit applies at $2.5 million or more.
Legal rate (no rate agreed)
9%
CPLR 5004 rate for judgments and accrued claims; 2% in consumer debt actions against a natural person.
Criminal usury
Over 25% a year: class E felony
Criminal usury in the second degree under Penal Law 190.40.

Sources

Last checked

The rules in New York

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

Maximum agreed rate in New York: 16%. Civil limits do not apply to loans of $250,000 or more (other than one or two family home loans); no limit applies at $2.5 million or more.

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

Legal rate (no rate agreed) in New York: 9%. CPLR 5004 rate for judgments and accrued claims; 2% in consumer debt actions against a natural person.

When is charging high interest a crime in New York?

Criminal usury in New York: Over 25% a year: class E felony. Criminal usury in the second degree under Penal Law 190.40.

Where do the New York usury laws come from?

The rules above come from N.Y. Gen. Oblig. Law 5-501, N.Y. Banking Law 14-a, N.Y. Penal Law 190.40 and N.Y. CPLR 5004. Each source is linked on this page. We last checked them in October 2026.

Good to know

Since a 2021 amendment, judgments in consumer debt actions against an individual bear 2% interest (CPLR 5004).

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.