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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RELATED FAQS
  1. Do payday loans hurt my ability to get a mortgage?

    Payday loans and cash advances are short-term, low-balance, high-APR loans that are usually granted at usury rates. They ... Read Full Answer >>
  2. Is my credit score usually checked before receiving a payday loan?

    Payday loans or cash advances are short-term, low-balance, high-interest loans. They are known as payday loans because of ... Read Full Answer >>
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