So that the loan could be considered usury it is necessary that, besides being significantly higher than the normal cost of money, the stipulated interest must be “grossly disproportionate when the circumstances of the case are taken into consideration .”
As a matter of logic, since no test exists to determine that which is considered ‘normal’ it falls to be alleged and proven that there were exceptional circumstances that justified the ‘grossly disproportionate rate of interest’. The financial institution that granted the “revolving” loan did not justify the exceptional circumstances that explain the provision of a significantly higher interest than a standard loan in consumer credit.
Generally, the exceptional circumstances which may justify an abnormally high interest rate are related to the risk of the operation. When the borrower plans to use the loan for a particularly lucrative, but high risk, operation, it is justified that the person who finances it will , as well as having to run the risk, also benefit from the high profits expected by fixing the interest rate significantly higher than normal.