North Carolina Usury Laws

North Carolina does not have the clearest of laws when it comes to interest rates. Indeed, at the present time, there even appears to be some conflict in the law when it comes to usury rates on personal loans in North Carolina.

There is one provision in the statutes of North Carolina that provide that the general usury rate on personal loans be limited at 8%. While this provision does seem fairly clear on the surface, there is another provision in the statutes of North Carolina that deal with usury limits.

Under this second provision in the North Carolina statutes, there is a provision that establishes a usury limit at a variable level. This provision sets forth that the usury limit on personal loans at 16% or the T-Bill rate set for non-competitive T-Bills.

In addition to all of these provisions about usury limits, the statutes of North Carolina actually set no usury limitations specifically for personal loans that are above $25,000.

With all of this set forth, the bottom line is that if a person wants to make wholly certain that he or she is in compliance with applicable usury laws in North Carolina, the safest course is to keep interest rates on personal loans at 8% or less. You will be better assured of not running afoul of applicable statutes by taking this more prudent course.

Because there are so many variations when it comes to usury laws in North Carolina, a person serious about lending practices in North Carolina really does need to seek out legal advice and assistance. Nothing in this article should be construed as providing you legal advice regarding usury laws and lending practices in North Carolina.

There are some other provisions in the statutes of North Carolina that govern different types of loans and financing arrangements in the state. There is a whole separate statutory scheme that sets forth permissible interest rate schemes associated with commercial loans as well as for loans that are made by certain types of financial institutions to individuals. The statutes that govern usury lending practices and usury limits in North Carolina can be found in the North Carolina General Statutes in Chapters 22, 22B, 23, 24, 25, 25A and 25B.

We do take all reasonable steps necessary to keep the information and materials up to date and accurate. However, the statutes governing loans and interest rates in New Mexico do change from time to time.

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