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Usury Laws in Pennsylvania

Pennsylvania caps loans of $50,000 or less at 6% a year, sets a 6% legal rate, and makes knowing and intentional violations a third-degree misdemeanor.

Last checked . General information, not legal advice.

Pennsylvania at a glance

Maximum agreed rate
6%
Does not apply to loans over $50,000, unsecured loans over $35,000, or business loans. Residential mortgages follow a separate rate under Article III of the act.
Legal rate (no rate agreed)
6%
Criminal usury
Knowing violation: third degree misdemeanor
The Department of Banking can also fine $10,000 per offense.

Sources

Last checked

The rules in Pennsylvania

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

Maximum agreed rate in Pennsylvania: 6%. Does not apply to loans over $50,000, unsecured loans over $35,000, or business loans. Residential mortgages follow a separate rate under Article III of the act.

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

Legal rate (no rate agreed) in Pennsylvania: 6%.

When is charging high interest a crime in Pennsylvania?

Criminal usury in Pennsylvania: Knowing violation: third degree misdemeanor. The Department of Banking can also fine $10,000 per offense.

Where do the Pennsylvania usury laws come from?

The rules above come from 41 P.S. 201, 41 P.S. 202, 41 P.S. 502 and 41 P.S. 505. Each source is linked on this page. We last checked them in October 2026.

Good to know

A borrower who paid excess interest can recover triple the excess under Section 502 of the same act.

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.