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Texas Interest Rates Laws


More Information on Interest Rate Laws

Legal Maximum Rate of InterestWhen not specified, 6% (Finance §302.002)
Penalty for Usury (Unlawful Interest Rate)The greater of 3 times the amount computed subtracting the amount of interest allowed by law from the total amount of interest contracted for, charged, or received; or $2000 or 20% of the amount of principal, whichever is less (Finance §305.001 to 305.003); creditor who is liable is also liable for reasonable attorney's fees (Finance §305.005); each offense is a misdemeanor with fine of up to $1000 (Finance §305.008)
Interest Rates on JudgmentsIf contract rate, then lesser of the contract rate or 18% (Finance §304.002)
ExceptionsLoan for business, commercial, investment, or similar purpose; open-end accounts (Finance §303.305)

Note: State laws are constantly changing -- contact an attorney or conduct your own legal research to verify the state law(s) you are researching.

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