California's Maximum Investment Interest Rates Explained

The maximum interest rate in California is a topic that is governed by the state's Usury Law. This law was first established in 1918, with the maximum allowable interest rate set at 12% per year. Since then, the law has undergone several amendments, most notably in 1979, which brought the maximum rate down to 10% per year. This rate applies to written contracts for consumer loans, which are loans used primarily for personal, family, or household purposes. For non-consumer loans in writing, the maximum interest rate is either 10% per annum or 5% plus the discount rate charged by the Federal Reserve Bank of San Francisco, whichever is higher. For contracts not in writing, the maximum interest rate is 7%.

The maximum interest rate for consumer loans is 10%

The maximum interest rate for consumer loans in California is 10% per year. This is part of the California Usury Law, which was first established in 1918 with a maximum allowable interest rate of 12% per year. The 1979 constitutional amendment, Article XV, Section 1, brought the usury limit down to 10%.

The maximum interest rate of 10% applies to written contracts for loans that are for personal, family, or household purposes. Real estate loans are not considered consumer loans. For non-consumer loans in writing, the maximum interest rate is the higher of 10% per annum or 5% plus the discount rate charged by the Federal Reserve Bank of San Francisco.

For contracts not in writing, the maximum interest rate is 7%.

It's important to note that banks and similar institutions are exempt from the 10% maximum interest rate on consumer loans.

The maximum interest rate for non-consumer loans is 10% or 5% plus the discount rate charged by the Federal Reserve Bank of San Francisco

In California, the maximum interest rate for non-consumer loans is 10% or 5% plus the discount rate charged by the Federal Reserve Bank of San Francisco. This is a higher rate than the maximum interest rate for consumer loans, which is 10% per year. However, banks and similar institutions are exempt from this limit.

The maximum interest rate in California is part of the state's Usury Law, which was established in 1918 to protect borrowers by regulating the cost of borrowing money. While the initial maximum allowable interest rate was 12% per year, this has since been amended, most notably in 1979, to the current rate of 10% per year.

While there are statutory limits on interest rates in most states, these are not always enforceable because consumers frequently agree to rates higher than the limit. As a result, legal interest rate limits are often little more than general guidelines. For example, California's interest rate limit for sales contracts is 12%, but consumers may agree to a higher rate.

The maximum interest rate for sales contracts is 12%

The maximum interest rate for sales contracts in California is 12%. This is part of California's Usury Law, which was established in 1918 to protect borrowers by regulating the cost of borrowing money.

The Usury Law initially set a maximum allowable interest rate of 12% per year. However, with constitutional amendments, most notably the 1979 amendment, the usury limit has been reduced to 10% per year with a broader range of exemptions.

For written contracts, the maximum annual interest rate is 10% if the loan is for personal, family, or household purposes (i.e. a consumer loan). Real estate loans are not considered consumer loans. For non-consumer loans in writing, the maximum interest rate is the higher of 10% per annum or 5% plus the discount rate charged by the Federal Reserve Bank of San Francisco.

For contracts not in writing, the maximum interest rate is 7%. It's important to note that banks and similar institutions are exempt from these interest rate limits in California.

The maximum interest rate for interest on judgments is 7%

The maximum interest rate for interest on judgments in California is 7%. This is lower than the maximum interest rate for sales contracts, which is 12%.

In California, the maximum annual interest rate on consumer loans is 10%. However, banks and similar institutions are exempt from this limit. For non-consumer loans in writing, the maximum interest rate is the higher of 10% per annum or 5% plus the discount rate charged by the Federal Reserve Bank of San Francisco.

The maximum interest rate for contracts not in writing is 7%. If an individual or organisation is found to have issued a usurious loan in California, they are subject to penalties, including payment to the borrower of triple the amount of interest collected in the year before the borrower brings suit.

California's Usury Law began in 1918 with initial statutes establishing a maximum allowable interest rate of 12% per year. With some constitutional amendments, most notably the 1979 constitutional amendment, Article XV, Section 1, California's usury limit is now generally 10% per year with a broader range of exemptions.

The maximum interest rate for contracts not in writing is 7%

The maximum interest rate for contracts not in writing in California is 7%. This is a general rule, with some exceptions. For example, the maximum annual interest rate on consumer loans is 10%, but banks and similar institutions are exempt from this limit.

The maximum interest rate for non-consumer loans in writing is the higher of 10% per annum or 5% plus the discount rate charged by the Federal Reserve Bank of San Francisco. This means that for the better part of the last decade, the maximum interest rate was 10%.

California's interest rate limit for sales contracts is 12%, and 7% for interest rates on judgments. The state's Usury Law, which began in 1918, established a maximum allowable interest rate of 12% per year. With some constitutional amendments, most notably the 1979 constitutional amendment, Article XV, Section 1, California’s usury limit is now generally 10% per year with a broader range of exemptions.

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