Usury Definition & Meaning | YourDictionary (2024)

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Usury Definition & Meaning | YourDictionary? ›

usury. / (ˈjuːʒərɪ) / nounplural -ries. the act or practice of loaning money at an exorbitant rate of interest.

1. : the lending of money with an interest charge for its use. especially : the lending of money at exorbitant interest rates. 2. : an unconscionable or exorbitant rate or amount of interest.

Usury [N] [S] the sum paid for the use of money, hence interest; not, as in the modern sense, exorbitant interest. The Jews were forbidden to exact usury ( Leviticus 25:36 Leviticus 25:37 ), only, however, in their dealings with each other ( Deuteronomy 23:19 Deuteronomy 23:20 ).

A loan may be considered usurious because of excessive or abusive interest rates or other factors defined by the laws of a state. Someone who practices usury can be called a usurer, but in modern colloquial English may be called a loan shark.

What is an example of usury? If the law on maximum interest rates sets a limit of 15%, charging a borrower 25% would be usury.

The Christian church drew on biblical passages and moral and religious reasons to define usury as a sin. The Church placed a ban on the practice of usury to prevent this “evil”. In Islam, the Quran and the teachings of the Prophet Muhammad led Muslims to also view usury as a crime.

In sum, early Christian doctrine prohibited usury, which was originally understood as a ban on charging any interest on any kind of loan. 62 Charging interest was understood as a violation of commutative justice because it robbed the borrower of the fruits of his own capital.

Usury is the sin of forcing borrowers to pay money for nothing. In the feudal economy, when the costs of administering a loan, inflation, default risk, and opportunity cost were zero, or nearly so, any interest was considered unjustified, and so any interest was considered usury.

It is not a mortal sin, nor has it ever been a mortal sin. The Bible only forbids usury to Hebrews, forbidding them to practice usury on other Hebrews.

Usury first became common in England under King Henry VIII and originally pertained to charging any amount of interest on loaned funds. Over time it evolved to mean charging excess interest, but in some religions and parts of the world charging any interest is considered illegal.

Is usury a crime in the US? ›

Usury is regulated and enforced primarily by state usury laws, including the rate of interest determined to be usurious. However, there are federal laws that may also apply, including the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. §§ 1961 to 1967). Violators can incur civil and criminal penalties.

First, Riba Al-Fadhl: To take more in exchange of one commodity in the event of barter of two similar commodities. Second, Riba An-Nasee'ah: To take a larger return of one thing while two identical things are bartered. But in this case the larger return is affected after a fixed period of time.

Etymology. From Middle English usurie, from Latin ūsūria, from ūsūra (“lending at interest, usury”) from ūsus (“use”), from stem of ūtī (“to use”).

While many states have usury laws that limit the interest rates that lenders can charge, a lot of these state laws don't apply in practice to credit card rates. Instead, they apply mainly to loans, and even then, financial institutions tend to get around them through exemptions.

Banks can often charge up to the maximum interest rate allowed by the state where they are based. Over time, however, most states also exempted banks from their usury laws to entice them to set up shop there, Johnson says.

It is not a mortal sin, nor has it ever been a mortal sin. The Bible only forbids usury to Hebrews, forbidding them to practice usury on other Hebrews.

Usury is the act of lending money at an interest rate that is considered unreasonably high or that is higher than the rate permitted by law. Legal Rate of Interest: What it Means, Special Considerations. A legal rate of interest is a limit set to prevent lenders from charging borrowers excessive interest rates.

With some constitutional amendments, most notably the 1979 constitutional amendment, Article XV, Section 1, California's usury limit is now generally 10% per year with a broader range of exemptions.