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Usury Laws in North Carolina

In North Carolina, the legal rate is 8%, written loans of $25,000 or less are capped at 16% (or the 6-month Treasury bill rate plus 6% if higher), and loans over $25,000 may carry any agreed rate.

Last checked . General information, not legal advice.

North Carolina at a glance

Maximum agreed rate
16% (loans of $25,000 or less)
The Commissioner of Banks publishes the monthly cap: the greater of 16% or the 6-month T-bill rate plus 6%. Over $25,000, any written rate is allowed.
Legal rate (no rate agreed)
8%

Sources

Last checked

The rules in North Carolina

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

Maximum agreed rate in North Carolina: 16% (loans of $25,000 or less). The Commissioner of Banks publishes the monthly cap: the greater of 16% or the 6-month T-bill rate plus 6%. Over $25,000, any written rate is allowed.

What interest rate applies in North Carolina when no rate was agreed?

Legal rate (no rate agreed) in North Carolina: 8%.

Where do the North Carolina usury laws come from?

The rules above come from N.C. Gen. Stat. 24-1 and N.C. Gen. Stat. 24-1.1. 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.