Oklahoma Usury Laws
When it comes to personal loans made in Oklahoma, the government of the state has seen fit to establish to avenues in regard to usury provisions relating to these loans. First of all, when it comes to usury limitations, the state has established provisions that govern personal loans made from one individual to another. Second, there are usury limitations that have been set forth when a personal is made to an individual from another individual that is duly licensed by the state to make personal loans.
When a consumer or personal loan is made from one individual to another, the usury limitation on that loan may no exceed 10%. Interest rates can exceed 10% if the individual making the personal or consumer loan is licensed to make these types of loans by the state. Nevertheless, an interest rate in such a situation needs to be reasonable to the circumstances. There is more leeway when it comes to lending practices between a consumer and a licensed individual.
In the case of non-consumer loans, there is a different statutory scheme pertaining to interest rate limitations. When it comes to non-consumer loans, the interest rate cap is set at 45% per annum. This is, indeed, a high cap on permissible interest rates that are available on non-consumer loans.
The judgment rate for civil cases has been established at the T-Bill rate on the date the judgment was entered plus an additional 4%.
The licensing process does lend a level of oversight when it comes to personal loans. The state mandates that these licensed individuals follow certain reporting requirements in order to maintain their licenses with the state. For the reason, the state -- in theory -- is in a better position to monitor the lending practices of these types of lenders. The state should be able to step in more rapidly and effectively is such a licensed individual is engaged in inappropriate or illegal lending practices.
The statutes governing usury and associated lending practices can be found at Oklahoma Statutes at Titles 14A and 24.
Nothing in this article should be construed as providing you legal advice or guidance. If you have any specific questions about usury after reading this article, you should consult with an attorney. Additionally, 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 Oklahoma do change from time to time.