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Today, usury is sometimes more commonly known as ?loan sharking.? Usury eventually became a felony because of the difficulty involved in convicting of extortion those who engage in ?loan sharking.? Massachusetts General Laws Chapter 271 Section 49 is the statute that prohibits usury.

These usury laws (also known as interest rate limits) are common throughout the country. In Massachusetts, the maximum amount of interest a borrower can charge is 6%. This may seem low at first, and that is because Massachusetts allows borrowers and creditors to enter into written contracts for higher interest rates.

Arguably the most unique set of procedures set forth by state usury laws is in Massachusetts, which has a broad usury rate of 20 percent. However, Massachusetts offers a unique mechanism where a lender can enter into a loan agreement with an agreed-to rate of more than 20 percent.

Please note, there are state-specific minimum loan amounts for some states: Georgia -- $3,100 minimum. Hawaii -- $2,100 minimum. Massachusetts -- $7,000 minimum.

A. The Basic Rate: The California Constitution allows parties to contract for interest on a loan primarily for personal, family or household purposes at a rate not exceeding 10% per year. Note that as with all other percentages we are listing, this percentage is based on the unpaid balance.

The Massachusetts No Interest Loan (NIL) program was created to provide needy Massachusetts residents attending post-secondary educational institutions in Massachusetts with a state-funded loan. The NIL program offers zero interest loans to assist students in meeting educational costs.