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 Maryland, usury laws are codified under the Commercial Law and Financial Institutions Articles of the Maryland Annotated Code. The general usury limit is 6% per annum unless a different rate is expressly authorized by law. For loans under $2,000, the maximum interest rate is 2.75% per month (33% per year). However, there are numerous exceptions to these limits, particularly for regulated institutions such as banks, savings and loans, and credit unions, which may charge higher rates. Additionally, for loans secured by real property, different rates may apply, and certain open-end credit plans may also be exempt from the general usury limits. The elements of a usury claim in Maryland 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. Interest is considered compensation for the use of money, and in Maryland, this includes service charges, finance charges, and discount points, but does not include contingent charges or other amounts that are not classified as interest under the law.