Usury vs. Interest: What's the Difference?
Edited by Huma Saeed || By Sawaira Riaz || 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.
Sawaira Riaz
Sep 19, 2023
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.
Sawaira Riaz
Sep 19, 2023
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.
Sawaira Riaz
Sep 19, 2023
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.
Harlon Moss
Sep 19, 2023
Comparison Chart
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Usury and Interest Definitions
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Interest
Capital gain on investments.
She earned interest from her stock portfolio.
Sawaira Riaz
Sep 19, 2023
Usury
Immoral loan agreement.
The court ruled the contract was void due to usury.
Sara Rehman
Sep 19, 2023
Interest
A share or right in something.
He has an interest in the family business.
Harlon Moss
Sep 19, 2023
Usury
Excessive interest rates.
Usury laws limit how much interest can be charged.
Harlon Moss
Sep 19, 2023
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Interest
A state of curiosity or concern about or attention to something
An interest in sports.
Sawaira Riaz
Sep 17, 2023
Interest
Something, such as a quality, subject, or activity, that evokes this mental state
Counts the theater among his interests.
Sawaira Riaz
Sep 17, 2023
Usury
The practice of lending money and charging the borrower interest, especially at an exorbitant or illegally high rate.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
Usury
An excessive or illegally high rate of interest charged on borrowed money.
Sawaira Riaz
Sep 17, 2023
Interest
Something in which such a right, claim, or share is held
Has interests overseas.
Sawaira Riaz
Sep 17, 2023
Usury
(countable) An exorbitant rate of interest, in excess of any legal rates or at least immorally.
Sawaira Riaz
Sep 17, 2023
Interest
A person or group of persons holding such a right, claim, or share
A petroleum interest.
Sawaira Riaz
Sep 17, 2023
Interest
Involvement with or participation in something
She has an interest in the quality of her education.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
Usury
The practice of taking interest.
Usury . . . bringeth the treasure of a realm or state into a few nds.
Sawaira Riaz
Sep 17, 2023
Usury
Interest in excess of a legal rate charged to a borrower for the use of money.
Sawaira Riaz
Sep 17, 2023
Interest
To arouse the curiosity or hold the attention of
Your opinions interest me.
Sawaira Riaz
Sep 17, 2023
Interest
To cause to become involved or concerned with
Tried to interest her in taking a walk.
Sawaira Riaz
Sep 17, 2023
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%.
Sawaira Riaz
Sep 17, 2023
Interest
(uncountable) A great attention and concern from someone or something; intellectual curiosity.
He has a lot of interest in vintage cars.
Sawaira Riaz
Sep 17, 2023
Interest
(uncountable) Attention that is given to or received from someone or something.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
Interest
(uncountable) Condition or quality of exciting concern or being of importance.
Sawaira Riaz
Sep 17, 2023
Interest
The persons interested in any particular business or measure, taken collectively.
The iron interest;
The cotton interest
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
Interest
To be concerned with or engaged in; to affect; to concern; to excite.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
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.
Sawaira Riaz
Sep 17, 2023
Interest
Any excess of advantage over and above an exact equivalent for what is given or rendered.
You shall have your desires with interest.
Sawaira Riaz
Sep 17, 2023
Interest
The persons interested in any particular business or measure, taken collectively; as, the iron interest; the cotton interest.
Sawaira Riaz
Sep 17, 2023
Interest
A sense of concern with and curiosity about someone or something;
An interest in music
Sawaira Riaz
Sep 17, 2023
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
Sawaira Riaz
Sep 17, 2023
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
Sawaira Riaz
Sep 17, 2023
Interest
A fixed charge for borrowing money; usually a percentage of the amount borrowed;
How much interest do you pay on your mortgage?
Sawaira Riaz
Sep 17, 2023
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
Sawaira Riaz
Sep 17, 2023
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
Sawaira Riaz
Sep 17, 2023
Interest
(usually plural) a social group whose members control some field of activity and who have common aims;
The iron interests stepped up production
Sawaira Riaz
Sep 17, 2023
Interest
Emotional or intellectual engagement.
The book held my interest until the end.
Sara Rehman
Sep 19, 2023
FAQs
How do Usury and Interest differ?
Usury is excessive or illegal interest, while interest is a standard financial charge.
Sawaira Riaz
Sep 19, 2023
Is Usury always illegal?
Usury is often illegal, depending on jurisdiction and the rate charged.
Sawaira Riaz
Sep 19, 2023
What is Interest?
Interest is the cost of borrowing money, generally expressed as a percentage.
Sawaira Riaz
Sep 19, 2023
Can Interest rates be negotiated?
Interest rates can often be negotiated between the lender and borrower.
Sawaira Riaz
Sep 19, 2023
Is Interest ever unethical?
Interest can be considered unethical if it crosses into usurious territory.
Sara Rehman
Sep 19, 2023
Is Usury subjective?
Usury can be subjective and is often defined by legal or ethical standards.
Harlon Moss
Sep 19, 2023
What is Usury?
Usury is the illegal or unethical charging of excessive interest rates on loans.
Sawaira Riaz
Sep 19, 2023
Is Interest always legal?
Interest is generally legal but may become usurious if it exceeds legal limits.
Harlon Moss
Sep 19, 2023
Can Usury be unintentional?
Unintentional usury is possible if one is unaware of legal interest rate caps.
Janet White
Sep 19, 2023
Can Usury affect credit score?
Being a victim of usury won't directly affect your credit score but can lead to financial hardship.
Harlon Moss
Sep 19, 2023
Do all religions view Usury negatively?
Many religions frown upon usury, viewing it as exploitative.
Sawaira Riaz
Sep 19, 2023
Is Usury a modern concept?
Usury has historical and religious roots and is not just a modern concept.
Janet White
Sep 19, 2023
Does Interest serve a purpose?
Interest compensates lenders for the risk and opportunity cost of lending money.
Sawaira Riaz
Sep 19, 2023
About Author
Written by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
Edited by
Huma SaeedHuma is a renowned researcher acclaimed for her innovative work in Difference Wiki. Her dedication has led to key breakthroughs, establishing her prominence in academia. Her contributions continually inspire and guide her field.
