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Minnesota Interest Rates Laws

State laws set certain limits and guidelines for how much interest a lender may charge, traditionally referred to as usury laws. While the term usury once referred to as any kind of interest-bearing debt, it eventually was used to describe particularly burdensome interest rates. Although all states have these laws, credit card issuers and others often charge more than the statutory limit through exceptions carved into those laws. Additionally, consumers often waive the limit via contract (in writing or with the click of a mouse), a trade-off many consumers are willing to make in order to secure credit.

Minnesota statute limits interest rates to 6 percent in general, and 8 percent for written contracts. Exceptions to the limits include state banks, state credit unions, dealers under the SEC Act, and loans secured by savings accounts.

See the following table to learn more about interest rate laws in Minnesota, and Usury Laws and Limits on Credit Card Interest Rates for more general information.

Legal Maximum Rate of Interest 6% legal rate; written contract up to 8% (§334.01)
Penalty for Usury (Unlawful Interest Rate) Contract for greater interest void (§§47.20; 334.03); payor may recover full interest and premiums paid with costs (§334.02); usurious interest by banks, savings and loans and credit unions results in forfeitures of all interest and payor may recover twice interest paid (§48.196)
Interest Rates on Judgments Determined on or before December 20 of prior year by state court, administrator based on secondary market yield (§549.09)
Exceptions State banks/savings associations (§48.195); state credit union (§52.14); dealers under Securities Exchange Act (§334.19); mortgage loans (§47.204); business and agricultural loans (§334.011). Plans subject to provisions of Employee Retirement Income Security Act of 1974 (§334.01); loans secured by savings accounts (§334.012)

Note: State laws are always subject to change, either through new legislation, case law, or ballot initiative. We make every effort to ensure the accuracy of these pages, but you may also want to contact a Minnesota consumer protection attorney or conduct your own legal research to verify the state law(s) you are researching.

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