{"id":374498,"date":"2016-03-31T21:35:46","date_gmt":"2016-04-01T02:35:46","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/missouri-law\/missouri-interest-rates-laws.html"},"modified":"2016-06-20T19:48:47","modified_gmt":"2016-06-21T00:48:47","slug":"missouri-interest-rates-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/missouri-law\/missouri-interest-rates-laws.html","title":{"rendered":"Missouri Interest Rates Laws"},"content":{"rendered":"\n
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Missouri Interest Rates Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Overview of Missouri Interest Rate Laws<\/h2>\n

State laws set limits on the amount of interest a lender may charge<\/a> consumers, often referred to as "usury<\/a>" laws, but they are not always enforceable. That is because consumers often agree to higher rates when they agree to the terms of a credit card or other debts, thus waiving these limits. Most states also carve out statutory exceptions to these limits.<\/p>\n

Missouri law stipulates that interest rates on debt may not exceed 9 percent without an agreement to a higher rate. Business loans and some real estate loans are exempt from this limit.<\/p>\n

What Does ‘Usury’ Mean?<\/h2>\n

The term usury dates back to the Middle Ages, when it referred to the practice of charging interest in exchange for lending money. Once this practice became more commonly accepted, usury<\/i> was used to describe exorbitant amounts of interest. However, some cultures and religions continue to have an unfavorable view of interest-bearing debt in general, and thus use the term accordingly.<\/p>\n

Review the following table to learn the basics of Missouri’s interest rate laws, followed by links to related resources. See FindLaw’s Debt Collection Laws<\/a> and Personal Finance<\/a> sections for additional articles.<\/p>\n\n
Legal Maximum Rate of Interest<\/td>\nAbsent agreement, 9% (\u00a7408.020); contract rate not to exceed 10% except when market rate is higher (\u00a7408.030)<\/td>\n<\/tr>
Penalty for Usury (Unlawful Interest Rate)<\/td>\nIf usury collected, excess over legal rate applied to principal or debtor may recover (\u00a7\u00a7408.050, 060); debtor may recover twice amount of interest paid, costs of suit, and attorney’s fees (\u00a7408.030)<\/td>\n<\/tr>
Interest Rates on Judgments<\/td>\n9% or higher rate lawfully stipulated (\u00a7408.040)<\/td>\n<\/tr>
Exceptions<\/td>\nLoans to corporations, general partnerships, limited partnerships, or limited liability companies; business loans of $5000 or more; real estate loans other than residential real estate of less than $5000 secured by real estate used for agricultural activity or loans of $5000 or more secured solely by certificates of stock, bonds, bills of exchange, certificates of deposit or other commercial paper pledged as collateral for repayment of loan (\u00a7408.035)<\/td>\n<\/tr><\/tbody><\/table>\n

Note:<\/i><\/b> State laws are constantly changing — contact a Missouri consumer protection attorney<\/a> or conduct your own legal research to verify the state law(s) you are researching.<\/i><\/p>\n

Research the Law<\/h2>\n