usura

Usura refers to the practice of lending money at unreasonably high or legally restricted interest rates. The term originates from Latin usura, but its exact meaning varies by jurisdiction and historical context. In contemporary usage, usury generally describes lending at rates deemed exploitative or prohibited by applicable law, regardless of whether a specific cap exists.

Usury laws are designed to protect borrowers from excessively burdensome terms. Many countries set statutory caps on interest rates or define maximum annual percentage rates for consumer loans, credit cards, and payday financing. Some jurisdictions prohibit certain punitive charges, excessive compounding methods, or terms that trap borrowers in a debt cycle. Violations can render contracts unenforceable, trigger penalties for lenders, or lead to criminal charges in severe cases.

The economic debate centers on the balance between consumer protection and access to credit. Interest rate caps may reduce the availability of loans for high-risk borrowers or legitimate lenders, while proponents argue that caps prevent debt spirals and abusive practices. In practice, regulators often tailor rules to different loan types and markets.

Historically, usury has been contested in many cultures. In medieval Christian doctrine, charging interest was condemned or restricted, though legal acceptability evolved over time. In Islam, riba refers to unjust or excessive interest and is generally prohibited; contemporary Islamic finance seeks financing arrangements that comply with sharia, using risk-sharing and non-interest-based contracts.

See also: predatory lending, payday loan, APR, debt trap.