New York Promissory Note
New York Promissory Note & Maximum Interest Rate
For a basic personal loan, New York caps interest at 16% per year (civil) / 25% (criminal threshold).
Interest rate limits in New York
New York sets a civil usury limit of 16% per year — a lender charging more can be met with a usury defense in court, and the excess interest may be unenforceable.
Above 25% per year, New York treats the loan as criminal usury, a felony-level violation.
Loans to corporations and LLCs, and loans over $2.5 million, are generally exempt from these limits — this guidance is scoped to a simple personal note between individuals.
Reference: New York General Obligations Law §5-501; Penal Law §190.40. 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 New York law and any applicable exceptions before relying on a rate.
New York key points
- 16% per year is the civil usury ceiling for personal loans.
- 25% per year is the criminal usury threshold — a serious violation.
- Loans to corporate entities and loans over $2.5 million are generally exempt.
How to create your New York promissory note
- 1. Open the iRunDocs promissory note generator with New York selected.
- 2. Enter the lender, borrower, principal amount, and repayment terms.
- 3. Set an interest rate within New York'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 New York?
16% per year is the civil usury limit; charging more than 25% per year crosses into criminal usury.
What happens if a New York loan exceeds the usury rate?
The borrower may raise usury as a defense, and interest above the legal limit may be unenforceable. Rates above 25% can carry criminal penalties.
Are all loans in New York subject to the usury cap?
No. Loans to corporations or LLCs and loans over $2.5 million are generally exempt from the civil and criminal usury limits.
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.