Usury: State Considerations (New Jersey)

New Jersey’s usury laws have a general usury interest rate cap of 16% on written contracts.

A lender who charges a rate of interest higher than the applicable rate forfeits all interest and is entitled to recover only the principal of the loan. Further, if the borrower has paid interest in excess of the applicable rate permitted, that illegal interest is deducted from the principal of the loan owed to the usurer.

Criminal usury interest is that which exceeds 30% to an individual and 50% if the borrower is a corporation.