Legal Question in Banking Law in California

Personal Loans In CA, Any Limit On Interest Rate?

* I want to borrow money from individuals in CA for a business.

* I want to offer them a very lucrative interest rate.

* Am I restricted in any way on the amount (interest rate) that I can offer

them or can I be generous?

Thank-you for your help!


Asked on 9/16/11, 9:13 am

1 Answer from Attorneys

California law limiting interest rates (called Usery Law) has more holes in it than Swiss cheese used for target practice, but the one place it still holds true is private unsecured loans. I'm not positive what the current maximum rate is currently, but I think it is 10%. The reason for this is to discourage loan sharks.

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Answered on 9/16/11, 11:19 am


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