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Usury Laws in South Carolina

South Carolina sets no rate cap on loans other than consumer loans made by regular lenders, and the legal rate is 8.75% a year when no rate is agreed.

Last checked . General information, not legal advice.

South Carolina at a glance

Maximum agreed rate
No cap (loans other than consumer loans)
Consumer loans by people regularly in the lending business follow the Consumer Protection Code limits. The open-rate rule is subject to Chapter 10 of Title 37.
Legal rate (no rate agreed)
8.75%
Judgments carry the prime rate plus 4 points, set each year.

Sources

Last checked

The rules in South Carolina

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

Maximum agreed rate in South Carolina: No cap (loans other than consumer loans). Consumer loans by people regularly in the lending business follow the Consumer Protection Code limits. The open-rate rule is subject to Chapter 10 of Title 37.

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

Legal rate (no rate agreed) in South Carolina: 8.75%. Judgments carry the prime rate plus 4 points, set each year.

Where do the South Carolina usury laws come from?

The rules above come from S.C. Code 34-31-20, S.C. Code 37-3-104 and S.C. Code 37-3-605. 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.