Title 7, Chapter 4, Section 2
(a)(1)(A) The legal rate of interest shall be 7 percent per annum simple interest where the rate percent is not established by written contract. Notwithstanding the provisions of other laws to the contrary, except Code Section 7-4-18, the parties may establish by written contract any rate of interest, expressed in simple interest terms as of the date of the evidence of the indebtedness, and charges and any manner of repayment, prepayment, or, subject to the provisions of paragraph (1) of subsection (b) of this Code section, acceleration, where the principal amount involved is more than $3,000.00 but less than $250,000.00 or where the lender or creditor has committed to lend, advance, or forbear with respect to any loan, advance, or forbearance to enforce the collection of more than $3,000.00 but less than $250,000.00.
(B) Where the principal amount is $250,000.00 or more, or the
lender or creditor has committed to lend, advance, or forbear
with respect to any loan, advance, or forbearance to enforce the
collection of $250,000.00 or more, the parties may establish by
written contract any rate of interest, expressed in simple
interest terms or otherwise, and charges to be paid by the
borrower or debtor.
(C) Nothing contained in this subsection shall be construed to
prohibit the computation and collection of interest at a
variable rate or on a negative amortization basis or on an
equity participation basis or on an appreciation basis.
(2) Where the principal amount involved is $3,000.00 or less, such
rate shall not exceed 16 percent per annum simple interest on any
loan, advance, or forbearance to enforce the collection of any sum
of money unless the loan, advance, or forbearance to enforce the
collection of any sum of money is made pursuant to another law.
(3) As used in this Code section, the term "interest" means a
charge for the use of money computed over the term of the contract
at the rate stated in the contract or precomputed at a stated rate
on the scheduled principal balance or computed in any other way or
any other form. Principal includes such charges to which the
parties may agree under paragraph (1) of this subsection. Amounts
paid or contracted to be paid as either an origination fee or
discount points, or both, on any loan secured by an interest in
real estate shall not be considered interest and shall not be
taken into consideration in the calculation of interest and shall
not be subject to rebate as provided in paragraph (1) of
subsection (b) of this Code section.
(b)(1) Upon acceleration of the maturity of any loan, advance of
money, or forbearance to enforce the collection of any sum of
money upon which interest has been precomputed, unearned interest
shall be rebated to the debtor in such amount as would result in
the rate of interest earned being no greater than the rate of
interest established by the original contract. In the case of a
loan in which the principal and the interest for the entire term
of the loan are included in the face amount of the loan and the
loan is to be paid back in weekly, monthly, quarterly, semiannual,
or yearly installments, with the interest and principal portions
of each installment determined under the pro rata method, any such
rebate shall be determined on the pro rata method.
(2) Unless stipulated in the contract, there shall be no
(c) Nothing contained in this Code section shall be construed to amend or modify the provisions of Chapter 3 of this title, the "Georgia Industrial Loan Act," Article 1 of Chapter 1 of Title 10, the "Retail Installment and Home Solicitation Sales Act," Chapter 5 of this title, "The Credit Card and Credit Card Bank Act," Chapter 22 of Title 33, the "Insurance Premium Finance Company Act," Part 5 of Article 3 of Chapter 12 of Title 44, relating to pawnbrokers, and, except as provided in Code Section 7-4-3, Article 2 of Chapter 1 of Title 10, the "Motor Vehicle Sales Finance Act."