Updated October 12, 2026. Quick answer: The parties may agree in writing to any rate of interest, and with no written rate fixing a different one, interest on money from the time it becomes due (in the cases NRS 99.040 lists, such as contracts other than book accounts) is the prime rate at the largest bank in Nevada plus 2 percentage points (NRS 99.050 and 99.040).
Nevada promissory note at a glance
| Item | What the documents say |
|---|---|
| Maximum interest rate on a private loan | No general cap: the parties may agree in writing to any rate of interest, and must specify the rate in writing |
| Rate if the note names none | The prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions on the January 1 or July 1 immediately preceding the transaction, plus 2 percent, on money from the time it becomes due in the cases NRS 99.040 lists, adjusted each January 1 and July 1 until judgment is satisfied (no fixed figure) |
| Penalty for charging too much | No penalty is stated for a private note; consumer credit to a covered service member or dependent is capped at the lesser of 36% or the federal maximum, and a contract in violation of that cap is void and unenforceable (NRS 99.050(2)) |
What Nevada law says about interest
Nevada lets parties agree in writing to any rate of interest on money due on a contract, so there is no general cap on a private note.
With no express contract in writing fixing a different rate, interest on money from the time it becomes due is allowed at the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions on the preceding January 1 or July 1, plus 2 percent, in these cases: contracts other than book accounts, settlement of book or store accounts, money received to the use of another and detained without consent, and unpaid wages after demand; no fixed figure is stated.
The sources in their own words
- Interest limit: “parties may agree for the payment of any rate of interest” (NRS Chapter 99 Interest Rates).
- Interest limit: “The parties shall specify in writing the rate upon which they agree” (NRS Chapter 99 Interest Rates).
- Rate when none is agreed: “interest must be allowed at a rate equal to the prime rate” (NRS Chapter 99 Interest Rates).
- Exemption or penalty: “greater than the lesser of 36 percent or the maximum” (NRS Chapter 99 Interest Rates).
- Time limit to sue: “upon a contract, obligation or liability founded upon an instrument” (NRS Chapter 11 Limitation of Actions).
- Time limit to sue: “commenced within 6 years after the due date” (NRS Chapter 104 Uniform Commercial Code).
If you’re ready to put it in writing
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Signing the note: signature, witness, notary
Under NRS 104.3401 a person is not liable on an instrument unless the person signed it or an agent signed for them. A note is signed by the person who promises to pay.
None of the sections read for Nevada requires a witness or a notary for the note itself. A note secured by real property is a separate question; see what an intra-family mortgage requires.
How long a lender has to sue
Nevada gives six years to sue on a note payable at a definite time under its enacted UCC 3-118, and six years on a contract founded on a written instrument.
A worked example: a $20,000 note
Suppose a relative lends you $20,000 and you sign a note for 5 years at 8% a year, paid monthly. With r = 8%/12 and n = 60 months, the level payment is principal times r divided by (1 minus (1 + r) to the power of negative n): $405.53 a month, computed here from these assumed inputs, not quoted. Over the 60 payments that is $24,331.80 in total, of which $4,331.80 is interest.
The 8% rate is an assumed figure for the illustration, not a recommended or typical one; the Nevada rules above decide what a lender may charge. The federal side of a loan between relatives is covered at family loan minimum interest rate and AFR rates by month.
A loan or a gift?
A loan that may never be repaid is taxed differently; see family loan vs gift, forgiving a family loan and gift tax by state.
What the documents do not say
- The prime rate that sets the legal rate changes twice a year and is not stated on this page.
- Silence on a witness or notary in the sections read is not proof that no other Nevada law requires one.
Common mistakes
- Assuming that no stated cap means no rule: the Nevada table above gives the limit as Any rate agreed in writing, and the page lists what the documents do not say.
- Leaving the rate out: if no written contract fixes a rate, the legal rate (the prime rate plus 2 percentage points) runs on money from the time it becomes due in the cases NRS 99.040 lists, and it is rarely what the parties meant.
- Waiting too long to enforce: Nevada allows 6 years to sue on a written note.
Related: promissory notes by state, promissory note requirements, family loan minimum interest rate, and gift tax by state.
Sources
- NRS Chapter 99 Interest Rates: https://www.leg.state.nv.us/nrs/nrs-099.html
- NRS Chapter 11 Limitation of Actions: https://www.leg.state.nv.us/nrs/nrs-011.html
- NRS Chapter 104 Uniform Commercial Code: https://www.leg.state.nv.us/nrs/nrs-104.html
Sources: the primary documents linked above, read on October 12, 2026. General information, not legal or tax advice. Statutes change and courts read them, so confirm anything consequential with a lawyer licensed in your state.