Real Estate Finance
Charging an interest rate on a loan that exceeds the legal maximum allowed by state law.
Usury is the practice of lending money at an interest rate that exceeds the statutory maximum. In New York, the civil usury limit is 16% per year for most loans. Loans made by banks and licensed lenders are generally exempt from usury limits. If a loan is found to be usurious, the borrower may be relieved of the obligation to pay any interest, and in some cases, the entire loan may be voided. Criminal usury in New York (charging more than 25%) is a felony.
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