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 New Jersey, usury laws are designed to limit the amount of interest that can be charged on a loan to prevent lenders from imposing excessive rates on borrowers. The legal maximum interest rate for a loan in New Jersey is generally 6% per annum when not written and 16% per annum when agreed upon in writing, as per N.J.S.A. 31:1-1. However, there are exceptions to these limits for certain types of loans and lenders, such as banks and other licensed financial institutions, which may be allowed to charge higher rates as permitted by federal law or other New Jersey statutes. The elements of a usury claim in New Jersey include (1) the existence of a loan of money, (2) an absolute obligation to repay the principal amount, and (3) the charging of an interest rate exceeding the maximum allowed by law. In New Jersey, interest is considered compensation for the use or forbearance of money, and it does not include charges that are not deemed interest by law or that are allowed in addition to interest in connection with credit extension. Service charges, finance charges, and discount points are typically regarded as interest for the purposes of usury unless they fall into categories that are explicitly excluded or permitted by law. Contingent or uncertain charges are generally not considered interest under New Jersey's usury laws.