What term describes any rate of interest above the maximum rate allowable by law?

The term "usury" refers specifically to the practice of charging an interest rate that exceeds the legal maximum permissible by law. This legal definition is important because it protects borrowers from predatory lending practices that could exploit their financial situations. Laws on usury vary by state or country, establishing a ceiling on interest rates to prevent lenders from imposing excessive rates that could lead to financial hardship for borrowers.

The concept of usury has deep historical roots and has been a significant legal and ethical issue in various cultures and legal systems, reflecting concerns about fairness and exploitation in lending practices. Understanding usury is crucial for anyone entering a financial contract, as it highlights the boundaries set by law to promote fair lending and protect consumers.

Other terms listed in the options have distinct meanings. "Interest Rate" simply indicates the cost of borrowing expressed as a percentage and does not inherently reflect legality or morality. "Default Rate" refers to the increased interest charged when a borrower fails to meet the terms of their loan. "Usual Rate" doesn't have any specific legal context and typically describes a commonly accepted or standard rate of interest, but it does not address the legality aspect that usury specifically covers. Therefore, usury is the correct term related to interest rates exceeding legal limits.