Legal rate of interest

The legal rate of interest is that which is the highest that the state or country law will allow to be applied without being declared illegal.

It varies a lot from country to country, and indeed in some places the legal rate of interest that can be charged can be surprisingly high. Lending at above this rate is usually known as usury.

Related Articles

Turnover
Investment Banking
Disbursement
Float
Hyperinflation

More Financial Words and Vocabulary Explained