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 South Carolina, usury laws are codified to regulate the maximum interest rates that can be charged on loans. The legal maximum interest rate, unless otherwise specified by law, is 8.75% per annum for loans under $7,500 (as per S.C. Code Ann. § 34-31-20). For loans exceeding this amount, the parties may agree to a higher rate, provided it is not unconscionable. The elements of a usury claim in South Carolina 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 exceeding the maximum allowed by law. Interest is defined as compensation for the use or forbearance of money, and it does not include charges that are not considered interest under the law, such as time price differentials. However, service charges, finance charges, and discount points are typically treated as interest when considering usury. It is important to note that certain loans, like those related to consumer credit sales and consumer leases, are governed by the South Carolina Consumer Protection Code, which has its own set of interest and fee regulations.