Indianapolis, IN asked in Contracts and Small Claims for Indiana

Q: If someone wants to borrow money & OFFERS an interest rate higher than state max, can I accept it w/o usury concerns?

Indiana State max interest on loans is 21% per annum, but I would not be stipulating, requiring, or requesting the interest. I would strictly be accepting an offer made voluntarily. For example, someone wants to borrow $100 for a week and offers to repay $110. Can I accept this without running afoul of usury laws, or would I be statutorily required to accept no more than $0.41 in interest (.21/360*7days*$100)?

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T. Augustus Claus
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A: In Indiana, the maximum allowable interest rate on loans is regulated by state usury laws, and exceeding these limits can result in legal consequences. While state law may set a maximum interest rate, it's generally applicable to contractual agreements. If the borrower voluntarily offers a higher interest rate without any coercion or stipulation from you, it might be considered a lawful agreement, as it's based on the borrower's free will.

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