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 Minnesota, usury laws are codified under Minnesota Statutes, Chapter 334. These laws set the maximum interest rates that can be charged on loans. As of the knowledge cutoff date, the general legal rate of interest in Minnesota is 6% per annum if there is no written agreement. With a written agreement, the interest rate can go up to 8% per annum unless otherwise specifically allowed by law to exceed this rate. Certain loans, such as those related to retail installment sales, consumer credit sales, and consumer loans, may have different maximum rates as provided by other statutes. For a usury claim in Minnesota, the elements include: (1) the existence of a loan of money, (2) an absolute obligation to repay the principal amount, and (3) the lender charging an interest rate exceeding the maximum rate allowed by law. Charges that are considered interest include service charges, finance charges, and discount points. However, contingent or uncertain charges are typically not regarded as interest. It's important to note that there are exceptions and specific regulations for different types of loans and lenders, such as banks and credit unions, which may be subject to different standards under both state and federal law.