What term is used to describe a rate of interest that exceeds the maximum allowable by law?

The term "usurious" specifically refers to the practice of charging interest at a rate that is higher than what is legally permitted. This concept is crucial in financial and lending contexts, particularly in relation to consumer protection laws that aim to shield borrowers from excessively high interest rates. Usury laws are designed to cap the interest rates lenders can charge, and engaging in usurious practices can lead to legal repercussions for the lender.

In contrast, terms like "exorbitant" may describe something that is unreasonably high but do not necessarily imply legality or illegality in terms of interest rates. "Predatory" often relates to lending practices that exploit borrowers, but does not specifically define the interest rate itself. "Inflated," while indicating something that has been increased in price or rate, does not carry the same legal implications as usurious when discussing interest rates. Thus, "usurious" is the precise term that aligns with charging interest above the legally permissible threshold.