What is the maximum interest rate on a US loan?

There is no single national ceiling. In New York, General Obligations Law § 5-501(1) sets 6 percent unless Banking Law § 14-a applies, and § 14-a(1) fixes the maximum at 16 percent, with anything above 25 percent constituting criminal usury under Penal Law § 190.40. In Texas, Finance Code § 302.001(b) sets a general 10 percent ceiling, and Finance Code § 303.009 provides alternative ceilings between 18 and 24 percent, rising to 28 percent for business purpose credit.

Do New York usury caps apply to large commercial loans?

Not above the statutory thresholds. General Obligations Law § 5-501(6)(a) disapplies every law regulating the maximum rate of interest, except the criminal usury sections, to loans or forbearances of $250,000 or more that are not secured primarily by a one or two family owner-occupied residence. Section 5-501(6)(b) disapplies all such laws, including the criminal usury sections, at $2,500,000 or more. Installment advances under one written agreement are aggregated.

Can a corporate borrower raise usury as a defence in New York?

Only criminal usury. New York General Obligations Law § 5-521(1) provides that no corporation may interpose the defence of usury in any action, and extends that to associations and joint stock companies with corporate powers. Section 5-521(3) creates the exception: the bar does not apply where a corporation interposes a defence of criminal usury as described in Penal Law § 190.40, which sets the threshold at 25 percent per annum.

Loan Agreement in the US

Interest rate ceilings in the United States are set by state usury statutes, and the thresholds are specific enough to drive deal structuring. New York caps ordinary loans at 16 percent and makes anything above 25 percent criminal usury, but disapplies the civil cap for loans of $250,000 or more and both caps for loans of $2,500,000 or more. Texas sets a general 10 percent ceiling with statutory alternatives reaching 28 percent for business purpose credit. New York corporations cannot plead civil usury at all.

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Governing law

State usury statutes govern the lawful rate of interest. The federal Truth in Lending Act applies only to consumer credit and expressly excludes business, commercial and agricultural credit.

15 U.S.C. § 1603(1)

What a loan agreement has to contain in the US

The New York rate of interest on a loan or forbearance is 6 percent per annum unless a different rate is prescribed by Banking Law § 14-a, and no person or corporation may charge, take or receive interest above the prescribed rate.
New York General Obligations Law § 5-501(1) and (2)
The maximum rate provided for in § 5-501 is 16 percent per annum, and includes any amounts paid or payable directly or indirectly to or for the account of the lender in consideration for the loan.
New York Banking Law § 14-a(1) and (2)
Charging, taking or receiving interest above 25 percent per annum without being authorised by law is criminal usury in the second degree in New York, a class E felony.
N.Y. Penal Law § 190.40
No New York law regulating the maximum rate of interest applies to a loan of $250,000 or more, other than the criminal usury sections and other than loans secured primarily by a one or two family owner-occupied residence; and no such law, including the criminal usury sections, applies at $2,500,000 or more.
New York General Obligations Law § 5-501(6)(a) and (b)
In Texas the maximum rate or amount of interest is 10 percent a year except as otherwise provided by law, and all contracts for usurious interest are contrary to public policy and subject to the penalties in Chapter 305.
Tex. Fin. Code § 302.001(b)
Where the Texas computed ceiling falls below 18 percent it is set at 18 percent, where it exceeds 24 percent it is capped at 24 percent, and for business, commercial or investment purpose credit the limitation is 28 percent a year.
Tex. Fin. Code § 303.009(a) to (c)

Form, notarisation and registration

In New York, $250,000 or more advanced in installments under one written agreement counts as a single loan for the total committed, and the same aggregation applies at $2,500,000 across one or more lenders to one borrower.
New York General Obligations Law § 5-501(6)(a) and (b)

What catches drafters out

A New York corporate borrower cannot plead civil usury: no corporation may interpose the defence of usury in any action, and the term includes associations and joint stock companies with corporate powers.
New York General Obligations Law § 5-521(1)
That bar does not extend to criminal usury: subdivision 1 does not apply where a corporation interposes a defence of criminal usury as described in Penal Law § 190.40, so the 25 percent line still matters for corporate loans below $2,500,000.
New York General Obligations Law § 5-521(3)