Nevada Usury Laws
Nevada is one of only a few states in the United States that completely lacks a usury limit when it comes to personal loans. There simply are no usury limits when it comes to personal loans -- or to any other type of financing in Nevada. However, this does not mean that there are not some restrictions when it comes to loans and lending as well as interest rates that are permissible in Nevada.
Nevada does have a legal interest rate on personal loans that is established at 12%. However, with that said, the penalties that attach to usury laws generally are not in place in Nevada. The penalties that are associated with violation of usury laws in other states simply is not in place in Nevada. That does not necessarily mean that one individual has an unbridled ability to lend money to another at any imaginable interest rate. However, compared to what is possible in other states, Nevada comes pretty close to a Wild West atmosphere when it comes to lending and personal loans.
If a person clearly is engaged in a money sharking operation -- lending to individuals at extremely high interest rates time and again with substantial (and sometimes illicit) penalties for late payment or nonpayment. In such instances, when the conduct of a lender really does appear to be egregious, criminal sanctions can be imposed -- even in Nevada.
Courts in Nevada has been equally (comparatively) liberal when it comes to issues involving lending practices and interests rates. Acting on equitable principles, courts have been known to refashion personal loan agreements that had higher interest rates when the occasion or situation arises. In other words, some courts in Nevada have refashioned a loan agreement by lowering the interest rate and then enforcing the loan agreement with the revised interest rate inserted therein.
General statutory provisions governing interest rates in Nevada can be found in Nevada Revised Statutes Titles 7, 8 and 10. Additionally, there are provisions in Nevada statutes that govern the lending practices of state chartered financial institutions.
Keep in mind that nothing in this article should be construed as providing you legal advice. If you have any legal concerns, consult a lawyer. Moreover, we do work hard to keep the information in this article current and up to date. However, the statutes and regulations governing loans and interest rates in Nevada can and will change from time to time.