Usury Rate

AAA

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.

RELATED TERMS
  1. Credit Card

    A card issued by a financial company giving the holder an option ...
  2. Consumer Debt

    Debts that are owed as a result of purchasing goods that are ...
  3. Loan

    The act of giving money, property or other material goods to ...
  4. Interest

    1. The charge for the privilege of borrowing money, typically ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Bank

    A financial institution licensed as a receiver of deposits. There ...
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 >>
  3. What are the basic requirements to qualify for a payday loan?

    Payday loans, also known as cash advances, are short-term, low-balance, high-interest loans typically at usury rates that ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.
  2. Retirement

    Understanding Credit Card Interest

    Paying these rates can impact your disposable income and your investment returns.
  3. Options & Futures

    Payday Loans Don't Pay

    Hold too tightly to this rescue line and you'll soon be drowning in debt.
  4. Retirement

    Working With Islamic Finance

    There is no division between the spiritual and the secular in this type of socially responsible investing.
  5. Personal Finance

    Overdrafting

    An overdraft occurs when money is withdrawn from a bank account in an amount that exceeds the funds available in the account. Banks often permit this as a form of short-term loan to the account ...
  6. Credit & Loans

    How to Challenge & Win A Credit Card Dispute

    Found an error on your credit card statement? Five strategies to persuade the card issuer to fix it in your favor.
  7. Trading Strategies

    Eyeing a Loan? Consider Skipping the Banks

    Peer-to-peer lending platforms, such as Lending Tree, Lending Club and Prosper, offer borrowers newfound leverage. Here's a look.
  8. Personal Finance

    What's a Commercial Bank?

    A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans; and offers basic financial products ...
  9. Personal Finance

    What's a Bank Rec?

    A bank reconciliation statement is a monthly statement from the bank showing all activity in an account during the previous month, along with the end-of-month balance. An individual or company ...
  10. Investing

    What's Investment Banking?

    An investment bank is a special type of bank involved in a variety of large and complex financial services for major institutions.

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center