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 Louisiana (LA), usury laws are codified under the Louisiana Revised Statutes. These laws set the maximum interest rates that can be charged on loans to prevent lenders from imposing excessive interest on borrowers. According to Louisiana law, the legal interest rate is determined by the Louisiana Commissioner of Financial Institutions and can change annually. As of the knowledge cutoff in 2023, the legal interest rate is generally capped at 12% per annum unless otherwise specified by contract or other legal provisions. The elements of a usury claim in Louisiana include (1) the existence of a loan of money, (2) an absolute obligation on the part of the borrower to repay the principal amount, and (3) the lender charging an interest rate that exceeds the maximum rate allowed by law. Interest is defined as compensation for the use or forbearance of money, and it does not include certain charges like time price differentials, which are not considered interest. However, service charges, finance charges, and discount points are typically regarded as interest for the purposes of usury. It's important to note that certain loans, such as those related to consumer credit, may be subject to different interest rate limits and regulations. Borrowers and lenders should consult with an attorney to understand the specific usury laws applicable to their situation.