New York Payment Plan Interest Rate Under N.Y. Gen. Oblig. Law § 5-501(1)
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New York payment-plan-math: interest rate is 6; interest rate basis is N.Y. Gen. Oblig. Law § 5-501(1) default; cap raised to 16% by N.Y. Banking Law § 14-a.
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Citation: N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a
View the primary sourceVerified April 29, 2026
- Interest Rate: 6
- Interest Rate Basis: N.Y. Gen. Oblig. Law § 5-501(1) default; cap raised to 16% by N.Y. Banking Law § 14-a
- Max Contract Rate: 16
- Max Contract Rate Basis: N.Y. Banking Law § 14-a (civil usury). Above 25% triggers criminal usury (N.Y. Penal Law § 190.40). Both caps lift at $250K (civil) / $2.5M (total) per § 5-501(6).
This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.
New York Payment Plan Interest Rate Under N.Y. Gen. Oblig. Law § 5-501(1)
In New York, payment plans for debts or judgments are governed by the maximum allowable interest rate set under N.Y. Gen. Oblig. Law § 5-501(1) and N.Y. Banking Law § 14-a, which caps the rate at 6% per annum. This statute applies to the calculation of interest on overdue amounts included in a payment plan, meaning the total cost of the plan cannot exceed the principal balance plus simple interest computed at that rate. The law does not dictate the number of installments or payment frequency; those terms are typically negotiated or ordered by a court. The worked example below illustrates how the 6% figure applies to a standard calculation. For a personalized estimate, use the DocketMath calculator.
Governing authority
In New York, the payment plan math rule is set by N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a. The verified packet cites N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a (https://www.nysenate.gov/legislation/laws/GOB/5-501).
New York payment plan math: the verified value is 6% under N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a. The verified packet cites N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a (https://www.nysenate.gov/legislation/laws/GOB/5-501).
Estimate your own result: every situation has exceptions that can change the outcome. Use the payment plan math calculator to estimate your specific figure.
This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.
Run the numbers for your matter against the verified rule for this jurisdiction.
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