Usury vs. Interest: What's the Difference?
Edited by Aimie Carlson || By Janet White || Updated on September 25, 2023
Usury refers to the unethical or illegal practice of charging exorbitant or excessive interest rates on loans. Interest is the cost of borrowing money, typically expressed as a percentage of the principal loan amount.
Key Differences
Usury is a term that denotes the practice of charging an unreasonably high or excessive interest rate on a loan, often considered unethical or illegal. It's a concept that has been historically frowned upon and regulated by laws in many jurisdictions. Interest, on the other hand, is a general term that refers to the charge for borrowing money and is an accepted and regulated financial activity. While usury is usually defined by a legal maximum, interest rates can vary depending on lender policies, market conditions, and credit risk.
From a grammatical point of view, both "usury" and "interest" primarily function as nouns in the English language. However, the word "interest" can also function as a verb, meaning to engage or attract someone’s attention, while "usury" remains solely a noun. The plural forms of these terms are "usuries" and "interests," but the latter is more commonly used in its plural form to discuss multiple kinds or forms of interest, such as compound and simple interest.
In many religious and historical contexts, usury has been viewed as immoral or sinful. Interest, however, is often considered a standard part of modern finance, necessary for the functioning of the banking system. Usury is often a term subjected to legal interpretation, and what constitutes usury may differ from one jurisdiction to another. Interest rates, however, are often set by central banks or market conditions and can be negotiated between lender and borrower.
Usury is specifically linked to predatory lending practices and often involves exploiting the borrower's lack of options or understanding. Interest, in contrast, is considered a neutral term and represents a fundamental aspect of lending and borrowing. It's essential for borrowers to understand the difference: paying interest is standard when borrowing money, but being subjected to usury is generally illegal and unethical.
Comparison Chart
Definition
Excessive or illegal interest rate
Cost of borrowing money
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Legality
Often illegal
Legal and regulated
Part of Speech
Primarily a noun
Noun, can also be a verb
Plural Form
Usuries
Interests
Moral and Ethical Connotations
Generally negative
Generally neutral
Usury and Interest Definitions
Usury
Unethical high-interest lending.
The loan shark was arrested for usury.
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Interest
Capital gain on investments.
She earned interest from her stock portfolio.
Usury
Immoral loan agreement.
The court ruled the contract was void due to usury.
Interest
A share or right in something.
He has an interest in the family business.
Usury
Excessive interest rates.
Usury laws limit how much interest can be charged.
Interest
To engage or attract attention.
The movie trailer interested me.
Usury
Illegal lending practices.
The unlicensed lender was accused of usury.
Interest
A state of curiosity or concern about or attention to something
An interest in sports.
Usury
Financial exploitation.
Charging 50% interest is considered usury.
Interest
Something, such as a quality, subject, or activity, that evokes this mental state
Counts the theater among his interests.
Usury
The practice of lending money and charging the borrower interest, especially at an exorbitant or illegally high rate.
Interest
Often interests Regard for one's own benefit or advantage; self-interest
It is in your best interest to cooperate. She kept her own interests in mind.
Usury
An excessive or illegally high rate of interest charged on borrowed money.
Interest
A right, claim, or legal share
An interest in the new company.
Usury
(Archaic) Interest charged or paid on a loan.
Interest
Something in which such a right, claim, or share is held
Has interests overseas.
Usury
(countable) An exorbitant rate of interest, in excess of any legal rates or at least immorally.
Interest
A person or group of persons holding such a right, claim, or share
A petroleum interest.
Usury
(uncountable) The practice of lending money at such rates.
Interest
Involvement with or participation in something
She has an interest in the quality of her education.
Usury
The practice of lending money at interest.
Interest
A charge for a loan, usually a percentage of the amount loaned.
Usury
Profit.
Interest
An excess or bonus beyond what is expected or due.
Usury
A premium or increase paid, or stipulated to be paid, for a loan, as of money; interest.
Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of anything that is lent upon usury.
Thou oughtest therefore to have put my money to the exchanges, and then at my coming I should have received mine own with usury.
What he borrows from the ancients, he repays with usury of is own.
Interest
An interest group.
Usury
The practice of taking interest.
Usury . . . bringeth the treasure of a realm or state into a few nds.
Interest
The particular cause supported by an interest group.
Usury
Interest in excess of a legal rate charged to a borrower for the use of money.
Interest
To arouse the curiosity or hold the attention of
Your opinions interest me.
Usury
An exorbitant or unlawful rate of interest
Interest
To cause to become involved or concerned with
Tried to interest her in taking a walk.
Usury
The act of lending money at an exorbitant rate of interest
Interest
(Archaic) To concern or affect.
Interest
The price paid for obtaining, or price received for providing, money or goods in a credit transaction, calculated as a fraction of the amount or value of what was borrowed.
Our bank offers borrowers an annual interest of 5%.
Interest
Any excess over and above an exact equivalent
Interest
(uncountable) A great attention and concern from someone or something; intellectual curiosity.
He has a lot of interest in vintage cars.
Interest
(uncountable) Attention that is given to or received from someone or something.
Interest
(countable) An involvement, claim, right, share, stake in or link with a financial, business, or other undertaking or endeavor.
When scientists and doctors write articles and when politicians run for office, they are required in many countries to declare any existing conflicts of interest.
I have business interests in South Africa.
She has an interest in the proceedings, and all stakeholders' interests must be protected.
Interest
(countable) Something or someone one is interested in.
Lexicography is one of my interests.
Victorian furniture is an interest of mine.
The main character's romantic interest will be played by a non-professional actor.
Interest
(uncountable) Condition or quality of exciting concern or being of importance.
Interest
Injury, or compensation for injury; damages.
Interest
The persons interested in any particular business or measure, taken collectively.
The iron interest;
The cotton interest
Interest
To engage the attention of; to awaken interest in; to excite emotion or passion in, in behalf of a person or thing.
It might interest you to learn that others have already tried that approach.
Action films don't really interest me.
Interest
To be concerned with or engaged in; to affect; to concern; to excite.
Interest
(obsolete) To cause or permit to share.
Interest
To engage the attention of; to awaken interest in; to excite emotion or passion in, in behalf of a person or thing; as, the subject did not interest him; to interest one in charitable work.
To love our native country . . . to be interested in its concerns is natural to all men.
A goddess who used to interest herself in marriages.
Interest
To be concerned with or engaged in; to affect; to concern; to excite; - often used impersonally.
Or rather, gracious sir,Create me to this glory, since my causeDoth interest this fair quarrel.
Interest
To cause or permit to share.
The mystical communion of all faithful men is such as maketh every one to be interested in those precious blessings which any one of them receiveth at God's hands.
Interest
Excitement of feeling, whether pleasant or painful, accompanying special attention to some object; concern; a desire to learn more about a topic or engage often in an activity.
So much interest have I in thy sorrow.
Interest
Participation in advantage, profit, and responsibility; share; portion; part; as, an interest in a brewery; he has parted with his interest in the stocks.
Interest
Advantage, personal or general; good, regarded as a selfish benefit; profit; benefit.
Divisions hinder the common interest and public good.
When interest calls of all her sneaking train.
Interest
A fee paid for the use of money; a fee paid for a loan; - usually reckoned as a percentage; as, interest at five per cent per annum on ten thousand dollars.
They have told their money, and let outTheir coin upon large interest.
Interest
Any excess of advantage over and above an exact equivalent for what is given or rendered.
You shall have your desires with interest.
Interest
The persons interested in any particular business or measure, taken collectively; as, the iron interest; the cotton interest.
Interest
A sense of concern with and curiosity about someone or something;
An interest in music
Interest
The power of attracting or holding one's interest (because it is unusual or exciting etc.);
They said nothing of great interest
Primary colors can add interest to a room
Interest
A reason for wanting something done;
For your sake
Died for the sake of his country
In the interest of safety
In the common interest
Interest
A fixed charge for borrowing money; usually a percentage of the amount borrowed;
How much interest do you pay on your mortgage?
Interest
A diversion that occupies one's time and thoughts (usually pleasantly);
Sailing is her favorite pastime
His main pastime is gambling
He counts reading among his interests
They criticized the boy for his limited pursuits
Interest
(law) a right or legal share of something; a financial involvement with something;
They have interests all over the world
A stake in the company's future
Interest
(usually plural) a social group whose members control some field of activity and who have common aims;
The iron interests stepped up production
Interest
Excite the curiosity of; engage the interest of
Interest
Be on the mind of;
I worry about the second Germanic consonant
Interest
Be of importance or consequence;
This matters to me!
Interest
Cost of borrowing money.
The interest rate on the loan was 5%.
Interest
Emotional or intellectual engagement.
The book held my interest until the end.
FAQs
How do Usury and Interest differ?
Usury is excessive or illegal interest, while interest is a standard financial charge.
Is Usury always illegal?
Usury is often illegal, depending on jurisdiction and the rate charged.
What is Interest?
Interest is the cost of borrowing money, generally expressed as a percentage.
What's the plural of Interest?
The plural form is "interests."
Can Interest rates be negotiated?
Interest rates can often be negotiated between the lender and borrower.
Is Interest ever unethical?
Interest can be considered unethical if it crosses into usurious territory.
Is Usury subjective?
Usury can be subjective and is often defined by legal or ethical standards.
What is Usury?
Usury is the illegal or unethical charging of excessive interest rates on loans.
Is Interest always legal?
Interest is generally legal but may become usurious if it exceeds legal limits.
Can Usury be unintentional?
Unintentional usury is possible if one is unaware of legal interest rate caps.
What's the plural of Usury?
The plural form is "usuries."
Can Usury affect credit score?
Being a victim of usury won't directly affect your credit score but can lead to financial hardship.
Do all religions view Usury negatively?
Many religions frown upon usury, viewing it as exploitative.
Is Usury a modern concept?
Usury has historical and religious roots and is not just a modern concept.
Does Interest serve a purpose?
Interest compensates lenders for the risk and opportunity cost of lending money.
About Author
Written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
