Interest

Lending interest rates are rates imposed on a borrower by banks and financial institutions.  Borrowers pay interest to lending institutions for the money borrowed and different lending institutions charge different interest rates based upon the type and tenure of the loan, customers’ credit score and credentials.

Many state’s laws provide a statutory limit for interest rate and lenders cannot lend money at an interest rate in excess of a certain statutory maximum.  This is called “usury limit” and varies from state to state.  The general usury limit is the rate that can be charged by one person or corporation to another.