Nebraska Usury Laws

Nebraska has a fairly liberal ceiling when it comes to usury and usurious interest rates in the state. In this regard, Nebraska has established a general usury limit at 16% per annum.

When it comes to permissible interest rates in Nebraska, there are different statutory provisions depending on the type of lending relationship that exists. For example, pursuant to Nebraska statutes, the usury ceiling attaches to personal loans, in most instances to personal loans that are made from one individual to another.

In regard to these types of loans, courts in Nebraska generally take a narrow view when called upon to consider situations in which a loan agreement -- a personal loan agreement between individuals -- includes interest rates above and beyond the 16% per annum level.

In most instances, when a personal loan agreement is presented to a court that has an interest rate in excess of 16%, a court in Nebraska will consider the loan agreement itself to be void. The courts in the state normally conclude that a loan agreement -- again, a personal loan agreement -- that includes a provision for interest above and beyond the 16% usury ceiling is illegal.

Because it is deemed to be an illegal contract in the State of Nebraska, such a loan agreement with an excessive rate of interest will be completely unenforceable in the state. In other words, if a dispute arises around this type of loan agreement, the lender will not be able to use the courts to enforce a collection of what will be deemed to be an illegal loan.

The statutory provisions pertaining to usury limitations in Nebraska are codified at Nebraska statutes in the chapter dealing with consumer loan and financing transactions. In addition, there are some other statutory provisions that deal with other types of loans and lending arrangements in the state. This includes provisions pertaining to the permissible interest rate associated with loans from state chartered financial institutions.

If after reading this article you have more questions about usury laws in Nebraska, consult a lawyer. A lawyer can provide to you the additional information you need in regard to the usury laws that are in force in Nebraska today.

We do take all reasonable steps to keep the information in this article current. However, the laws governing usury and usurious interest rates in Nebraska can and do change from time to time.

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