Illinois Promissory Note
Illinois Promissory Note & Maximum Interest Rate
For a basic personal loan, Illinois caps interest at 9% per year (written contracts).
Interest rate limits in Illinois
Illinois generally caps interest at 9% per year for a written personal loan contract under the Illinois Interest Act.
If no rate is specified in writing, Illinois law defaults to 5% per year.
A separate 36% all-in APR cap (the Predatory Loan Prevention Act) applies specifically to certain high-cost consumer loans like payday and title loans — it is not the general personal-note rule.
Reference: Illinois Interest Act, 815 ILCS 205. This is general educational information scoped to a basic personal loan between individuals — not legal advice. Usury law has many exceptions (banks, licensed lenders, business loans, and loan size thresholds). Confirm current Illinois law and any applicable exceptions before relying on a rate.
Illinois key points
- 9% per year cap for a written personal loan contract.
- 5% per year applies by default when no rate is stated.
- A separate 36% APR cap applies only to specific high-cost consumer loan products, not general personal notes.
How to create your Illinois promissory note
- 1. Open the iRunDocs promissory note generator with Illinois selected.
- 2. Enter the lender, borrower, principal amount, and repayment terms.
- 3. Set an interest rate within Illinois's limits above, or leave it interest-free.
- 4. Review the PDF preview, download, sign, and keep a copy with your records.
Frequently asked questions
What is the maximum interest rate for a personal loan in Illinois?
9% per year for a written contract, under the Illinois Interest Act. Without a written rate, the default is 5% per year.
Is Illinois's 36% cap the same as the general usury limit?
No. The 36% all-in APR cap under the Predatory Loan Prevention Act applies specifically to certain high-cost consumer loans (like payday and title loans), not a basic personal promissory note.
What if an Illinois note doesn't state an interest rate?
The default legal rate of 5% per year applies.
Interest rate limits in other states
iRunDocs provides document tools and educational information. It is not a law firm and does not provide legal advice.