Every state has some laws regulating the amount of interest that can be collected.
The laws usually relate to interest collected in consumer credit transactions. Most states do not have any regulation of the interest rate that can be charged in a commercial transaction. Usury Limits Historically, usury limits were stated as a flat rate. More recently, states have adopted laws and regulations that tie usury ceilings to current market rates. Otherwise, as interest rates move up, flat usury rates may foreclose the ability of a bank or other lender to make loans to consumers.