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.

BREAKING DOWN '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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