What 'Usury Laws' are.

Usury laws are regulations governing the amount of interest that can be charged on a loan.

These specifically target the practice of charging excessively high rates on loans by deterring caps on the maximum amount of interest that can be levied. These laws are designed to protect customers.

In the Philippines, these usury laws include  Act no. 2655 which provided a legal rate of six (6) percent per annum applicable for loan or forbearance of any money, goods or credits and in judgments.