What term refers to any interest rate above the maximum rate allowable by law?

The term that refers to any interest rate above the maximum rate allowable by law is usury. This concept is rooted in legal definitions that establish a cap on the interest rates lenders can charge. When lenders impose rates exceeding these legal limits, they engage in usury, which is considered unlawful and unethical.

Usury laws exist to protect borrowers from predatory lending practices that can lead to excessive financial strain. Different jurisdictions may have varying maximum allowable interest rates, but the overarching principle remains that usury focuses on the violation of these limits.

Loan sharking, while related to predatory lending, specifically involves unlicensed lenders offering loans with exorbitantly high-interest rates, but it does not encapsulate the broader legal context of exceeding state-defined interest rates. High-risk lending refers to the practice of lending to borrowers with poor credit histories or high default risk, which does not inherently involve usury. Excessive interest is a general term but lacks the legal definition and specific implications associated with usury. Thus, usury is the precise term that defines the action of charging interest above legal limits.