Usury Rate

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DEFINITION of 'Usury Rate'

A rate of interest that is usually considerably above current market rates. Usury rates are often charged by unsecured lenders on loans. These rates can be illegal in some countries and situations because they often take advantage of unsuspecting individuals.

INVESTOPEDIA EXPLAINS 'Usury Rate'

Usury has been practiced since before the developement of ancient banking. Usury rates, similar to modern day interest payments, were charged as a means of compensation for lenders.

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    Payday loans and cash advances are short-term, low-balance, high-APR loans that are usually granted at usury rates. They ... Read Full Answer >>
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    Payday loans, also known as cash advances, are short-term, low-balance, high-interest loans typically at usury rates that ... Read Full Answer >>
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