Updated October 12, 2026. Quick answer: Up to 8% a year by written contract ($8 on each $100 for a year), 6% a year otherwise, and a usurious contract is void as to all interest (W. Va. Code 47-6-5 and 47-6-6).
West Virginia promissory note at a glance
| Item | What the documents say |
|---|---|
| Maximum interest rate on a private loan | 8% a year by written contract ($8 upon $100 for a year); without a written contract, no more than the 6% legal rate |
| Rate if the note names none | 6% a year ($6 upon $100 for a year) |
| Penalty for charging too much | A usurious contract is void as to all interest, and the borrower may in addition recover from the original lender or creditor or other holder not in due course four times the interest agreed to be paid, with a minimum of $100; a bona fide error rectified within fifteen days after notice is excused |
What West Virginia law says about interest
West Virginia lets parties contract in writing for interest at a rate not to exceed $8 upon $100 for a year (8%); other than a written contract, no person may take more than the $6 upon $100 legal rate.
Legal interest is $6 upon $100 for a year (6%) unless otherwise specially provided by law.
The sources in their own words
- Interest limit: “at a rate not to exceed $8 upon $100 for a year” (Section 47-6-5. Legal rate of interest; agreements in writing fixing rate of interest).
- Rate when none is agreed: “shall continue to be at the rate of $6 upon $100” (Section 47-6-5. Legal rate of interest; agreements in writing fixing rate of interest).
- Exemption or penalty: “an amount equal to four times all interest agreed to be paid” (Section 47-6-6. Usury and usurious contracts; penalties and forfeitures).
- Time limit to sue: “must be commenced within five years after the due date or dates” (Section 46-3-118. Statute of limitations).
- Time limit to sue: “a contract in writing, signed by the party to be charged” (Section 55-2-6. Actions to recover on award or contract other than judgment or recognizance).
- Time limit to sue: “but not under seal, within ten years” (Section 55-2-6. Actions to recover on award or contract other than judgment or recognizance).
If you’re ready to put it in writing
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Signing the note: signature, witness, notary
Under West Virginia’s UCC 3-401 a person is not liable on an instrument unless the person signed it or an agent who signed binds them. A note is signed by the person who promises to pay.
None of the sections read for West Virginia 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
West Virginia gives five years after the due date to sue on a note payable at a definite time (W. Va. Code 46-3-118), and ten years on a signed written contract not under seal (55-2-6).
A worked example: a $15,000 note
Suppose a relative lends you $15,000 and you sign a note for 5 years at 7% a year, paid monthly. With r = 7%/12 and n = 60 months, the level payment is principal times r divided by (1 minus (1 + r) to the power of negative n): $297.02 a month, computed here from these assumed inputs, not quoted. Over the 60 payments that is $17,821.20 in total, of which $2,821.20 is interest.
The 7% rate sits inside the West Virginia limit in the table above, which is why it was chosen. 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
- No exemption for large loans was read; whether one applies is a legal question this page does not settle.
- Which of the two time limits governs a particular note is a legal question the documents read do not settle.
- Silence on a witness or notary in the sections read is not proof that no other West Virginia law requires one.
Common mistakes
- Charging more than the limit in West Virginia, which the table gives as 8% by written contract, makes the contract void as to all interest, and the borrower may in addition recover four times all interest agreed to be paid (at least $100), unless a bona fide error is rectified within fifteen days after notice (W. Va. Code 47-6-6).
- Leaving the rate out: unless other law specially provides otherwise, legal interest is 6% a year ($6 upon $100), and it is rarely what the parties meant.
- Waiting too long to enforce: West Virginia allows 5 years (note); 10 years (signed written contract) 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
- Section 47-6-5. Legal rate of interest; agreements in writing fixing rate of interest: https://code.wvlegislature.gov/47-6-5/
- Section 47-6-6. Usury and usurious contracts; penalties and forfeitures: https://code.wvlegislature.gov/47-6-6/
- Section 46-3-118. Statute of limitations: https://code.wvlegislature.gov/46-3-118/
- Section 55-2-6. Actions to recover on award or contract other than judgment or recognizance: https://code.wvlegislature.gov/55-2-6/
- Section 46-3-401. Signature: https://code.wvlegislature.gov/46-3-401/
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.