Most states have usury laws (usually statutes) governing the amount of interest that can be charged on a loan. Usury laws vary from state to state, but the elements of a usury claim are generally: (1) a loan of money; (2) an absolute obligation to repay the principal; and (3) the exaction of a greater compensation than allowed by law for the use of the money by the borrower.

And interest means compensation for the use, forbearance, or detention of money. The term does not include time price differential, regardless of how it is denominated. The term does not include compensation or other amounts that are determined or stated by law not to constitute interest, or that are permitted to be contracted for, charged, or received in addition to interest in connection with an extension of credit.

Service charges, finance charges, and discount points are generally considered interest for purposes of usury. But contingent or uncertain charges are generally not considered interest.

In Indiana, usury laws are codified under Indiana Code Title 24. Trade Regulation; Consumer Sales and Credit (IC 24-4.5 et seq.), which governs the maximum interest rates that can be charged on loans. The legal rate of interest in Indiana is 8% per annum when there is no written contract specifying a different rate (IC 24-4.6-1-101). However, parties can agree in writing to a maximum interest rate of up to 21% per annum on consumer loans (IC 24-4.5-3-201). For loans that are not consumer loans, the parties may agree to any interest rate, as long as it is not unconscionable. The elements of a usury claim in Indiana include: (1) a loan of money; (2) an absolute obligation to repay the principal; and (3) the charging of an interest rate exceeding the maximum allowed by law. Charges that are considered interest include service charges, finance charges, and discount points, but do not include contingent or uncertain charges. It's important to note that certain types of loans, such as those made by financial institutions, may be subject to different regulations and exceptions under both state and federal law.