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Usury Laws in Rhode Island

Rhode Island caps loan interest at 21% a year (or prime plus 9 points if higher), applies 12% when no rate is stipulated, and treats willful violations as criminal usury punishable by up to 5 years in prison.

Last checked . General information, not legal advice.

Rhode Island at a glance

Maximum agreed rate
21% (or prime plus 9 points, if higher)
Licensed pawnbrokers and credit cards are excluded; commercial loans over $1 million have no limit if conditions are met.
Legal rate (no rate agreed)
12%
Also the post-judgment rate.
Criminal usury
Willful violation of the cap: up to 5 years in prison
Any willful and knowing violation of the maximum rate is criminal usury.

Sources

Last checked

The rules in Rhode Island

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

Maximum agreed rate in Rhode Island: 21% (or prime plus 9 points, if higher). Licensed pawnbrokers and credit cards are excluded; commercial loans over $1 million have no limit if conditions are met.

What interest rate applies in Rhode Island when no rate was agreed?

Legal rate (no rate agreed) in Rhode Island: 12%. Also the post-judgment rate.

When is charging high interest a crime in Rhode Island?

Criminal usury in Rhode Island: Willful violation of the cap: up to 5 years in prison. Any willful and knowing violation of the maximum rate is criminal usury.

Where do the Rhode Island usury laws come from?

The rules above come from R.I. Gen. Laws 6-26-1, R.I. Gen. Laws 6-26-2 and R.I. Gen. Laws 6-26-3. 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.