Good afternoon, Tom.
Many state's laws provide that you cannot lend money at an interest rate in excess of a certain statutory maximum. The usury limit which is stated as the general usury limit is the rate that can be charged by one person or corporation to another. In North Carolina General Statutes Â§ 24-1, the legal interest rate and the general usury limit is 8%. Unless Otherwise Stated, The rates are simple, not compound interest. However, there is a provision in NC for a variable rate, which is 16% or the T-Bill rate for non-competitive T-Bills. Above $ 25,000 there is no express limit. However, the law providing for 8% is still on the books - be careful and see an NC lawyer! If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click.