FinancingQuestion 76 of 120
California usury law generally limits the interest a private lender may charge, but a major exception exists for:
a.All cash loans
b.Loans over $1 million only
c.Loans to corporations only
d.Loans arranged or made by licensed real estate brokers
Explanation
California's usury restrictions cap interest on certain private loans, but numerous exemptions apply, including loans made or arranged by licensed real estate brokers. Institutional lenders such as banks are also exempt. These exemptions cover most real estate financing.
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