Pennsylvania Promissory Note
Pennsylvania Promissory Note & Maximum Interest Rate
For a basic personal loan, Pennsylvania caps interest at 6% per year (loans of $50,000 or less).
Interest rate limits in Pennsylvania
For an unlicensed personal loan of $50,000 or less with no written agreement for a different rate, Pennsylvania caps interest at 6% per year — one of the lowest general caps in the country.
Loans above $50,000, and unsecured loans above $35,000, generally fall outside this specific cap.
This guidance is scoped to a basic personal note between individuals — licensed lenders follow different rules.
Reference: Pennsylvania Loan Interest and Protection Law, 41 P.S. §201. 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 Pennsylvania law and any applicable exceptions before relying on a rate.
Pennsylvania key points
- 6% per year cap for unlicensed personal loans of $50,000 or less.
- Larger loans (over $50,000, or unsecured loans over $35,000) generally fall outside this specific cap.
- Violations can allow the borrower to recover triple the excess interest charged.
How to create your Pennsylvania promissory note
- 1. Open the iRunDocs promissory note generator with Pennsylvania selected.
- 2. Enter the lender, borrower, principal amount, and repayment terms.
- 3. Set an interest rate within Pennsylvania'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 Pennsylvania?
6% per year for an unlicensed personal loan of $50,000 or less without a different written rate, under 41 P.S. §201.
Does Pennsylvania's 6% cap apply to all loans?
No. Loans above $50,000 and certain unsecured loans above $35,000 generally fall outside this specific cap.
What can a Pennsylvania borrower do if they were charged too much interest?
They may be able to recover triple the amount of excess interest charged under the Loan Interest and Protection Law.
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.