Personal Loan Interest Rate Caps by State
| Who sets caps | Each state, by loan size and license type |
|---|---|
| Military borrowers | 36% MAPR cap (MLA) |
| Federal credit unions | 18% ceiling (through Sept. 10, 2027) |
| Avg. bank rate, 24-month loan | 11.90% (Fed G.19, Aug. 2026) |
| Online lenders | Generally follow your state's caps |
State caps at a glance
The table shows each state's maximum rate for common personal loan sizes, the license type it applies to, and when we last verified it. Click any state for full details and the statutory source.
| State | Rate cap on consumer installment loans | License required |
|---|---|---|
| Alabama | Tiered caps. | Yes. |
| Alaska | Licensed small lenders: 3%/month on the first $850, 2%/month on the part up to $10,000, and any agreed rate on the part from $10,000 to $25,000. | Yes, to make loans of $25,000 or less at more than the rate an unlicensed lender may charge. |
| Arizona | 36% a year up to $3,000; 24% on the part above $3,000 (consumer loans up to $10,000). | Yes. |
| Arkansas | 17% a year maximum for non-bank lenders, set by the state constitution. | — |
| California | Under $2,500: tiered 12%-30%/yr. | Yes. |
| Colorado | Supervised lenders: 21%, or tiered 36%/21%/15%; unlicensed lenders capped at 12%. | Yes. |
| Connecticut | 36% APR under $5,000; 25% APR $5,000-$50,000; all-in MLA-style APR. | Yes. |
| Delaware | No cap; licensed lenders may charge any rate the agreement states. | Yes. |
| District of Columbia | 24% a year cap; licensed money lenders must include all fees. | Yes. |
| Florida | Licensed consumer finance lenders: 36% a year on the first $10,000, lower tiers above, for loans up to $25,000. | Yes. |
| Georgia | Loans $3,000 or less need an installment lender license; above $3,000, any written rate. | Yes for loans of $3,000 or less. |
| Hawaii | Installment loans up to $1,500: 36% interest plus monthly fee; 12%/24% otherwise. | Yes. |
| Idaho | No rate cap; licensed lenders may charge any rate agreed in the contract. | Yes. |
| Illinois | 36% APR all-in cap on consumer loans; installment lenders up to $40,000. | Yes. |
| Indiana | Supervised loans: 36% to $2,600, 21% to $5,200, 15% above (or 25%). | Yes. |
| Iowa | Regulated lenders: rates set by Banking Superintendent rule; 2026 rule rewrite unclear. | Yes. |
| Kansas | 36% a year cap on closed-end consumer loans; open-end credit uncapped. | Yes. |
| Kentucky | Tiered monthly caps: 3% to $5,000, 2.42% to $10,000, 2.25% to $15,000. | Consumer loan companies must be licensed by DFI; applications go through NMLS. |
| Louisiana | Blended tiers: 36% to $1,400, 27% to $4,000, 24% to $7,000, 21% above. | Anyone in the business of making consumer loans must hold a consumer loan license from OFI before making loans; loans may be made only from… |
| Maine | Tiered: 30% to $2,000, 24% to $4,000, 18% above; 18% if over $8,000. | Non-bank lenders must hold a supervised lender license from the Bureau to make or service supervised loans (loans with a rate above… |
| Maryland | 33% APR on first $1,000 (loans to $2,000); 24% otherwise. | Most consumer lenders must be licensed by the Commissioner of Financial Regulation; licenses can be checked on NMLS Consumer Access. |
| Massachusetts | 23% APR plus $20 fee on loans up to $6,000; 20% usury above. | Yes. |
| Michigan | 25% APR cap for licensed lenders, plus processing fee up to 5%. | Lenders making loans under the Regulatory Loan Act must be licensed (the Act refers to 'licensees'). |
| Minnesota | Greater of 21.75% APR or 33% to $1,425/19% above; small loans 50%. | Yes. |
| Mississippi | Tiered 36%-14% APR; 59% to $5,330; credit availability 25%/month to $3,320. | Yes. |
| Missouri | No rate cap: licensed lenders may charge rates agreed by the parties. | Yes. |
| Montana | Licensed consumer lenders may charge no more than 36% a year interest, plus limited deferral and late fees. | No one may be in the business of making consumer loans in any amount unless the Consumer Loan Act authorizes it. |
| Nebraska | Licensed installment lenders: 24% on first $1,000, 21% above; loans up to $25,000. | Anyone in the business of making installment loans needs a Nebraska installment loan license, as does anyone who holds, services or deals… |
| Nevada | No general rate cap; loans above 40% APR need a 604A high-interest license. | Anyone in the business of lending in Nevada needs a license from the Commissioner, for each office. |
| New Hampshire | 36% APR cap on small loans up to $10,000, excluding two $100 yearly fees. | No one may be in the business of a small loan lender in New Hampshire, or with New Hampshire consumers, without a license. |
| New Jersey | Licensed lenders set agreed rates; criminal usury caps loans to individuals at 30%. | A consumer lender license is required to make personal, family or household loans of $50,000 or less, repayable in installments, at rates… |
| New Mexico | 36% APR all-in cap on loans up to $10,000 (raised from 175%). | No one may be in the business of lending $10,000 or less without a license from the director. |
| New York | Licensed lenders may exceed 16% civil cap; 25% criminal usury applies. | A license is needed to be in the business of making personal, family, household or investment loans of $25,000 or less (or business loans… |
| North Carolina | Tiered caps: 33% on first $4,000, 24% to $8,000, 18% above. | Anyone in the business of lending or servicing loans of $25,000 or less at charges above what Chapter 24 allows needs a license from the… |
| North Dakota | 36% APR cap (including origination charges) for licensed lenders; loans under $2,000 limited to 36 months with equal payments. | A money broker license from the Department of Financial Institutions is required to arrange or make loans to North Dakota residents, unless… |
| Ohio | Licensed lenders capped at 21%-28% a year depending on license; Consumer Installment Loan Act 25%. | Yes. |
| Oklahoma | Supervised loans: about 32% plus fed funds rate (tiered); small loans: 17% monthly. | Yes. |
| Oregon | 36% APR (or discount rate plus 30 points) on licensed loans up to $50,000. | Yes. |
| Pennsylvania | Licensed consumer discount companies: $9.50 per $100 yearly add-on plus fees; unlicensed: 6%. | Yes. |
| Rhode Island | Small loans up to $5,000: 2%-3% per month (24%-36% a year) by size. | Yes. |
| South Carolina | No cap over $600 (filed and posted rates); Consumer Finance Act schedule up to $7,500. | Yes. |
| South Dakota | 36% APR cap, all fees included, for every licensed money lender. | Yes. |
| Tennessee | 36% effective rate for industrial loan and thrift loans of $100+ (since July 2025); flex loans 24% plus fee. | Yes. |
| Texas | Tiered caps for licensed Chapter 342 lenders: up to 30% a year on the first $4,600, 24% on the part from $4,600 to $9,660, and 18% on the part up to $23,000 (amounts for loans made July 1, 2026 to… | A Chapter 342 license is required to make, transact or negotiate loans that charge more than other law allows. |
| Utah | No rate cap: parties may agree to any finance charge; lenders must notify DFI. | Not a license as such: a creditor subject to the Consumer Credit Code must file a notification with DFI at least 30 days before starting… |
| Vermont | 24% on first $1,000, 12% above (or 18% APR if higher). | Yes. |
| Virginia | 36% simple annual interest on licensed $300-$35,000 installment loans. | Yes. |
| Washington | 25% simple annual interest cap plus up to 4% origination fee (Consumer Loan Act). | Yes. |
| West Virginia | 31% up to $3,500; 27% to $15,000; 18% above. | Yes. |
| Wisconsin | No rate cap for DFI-licensed lenders; license needed above 18%. | A DFI license is required to make a consumer loan with a finance charge above 18% a year, to take an assignment of such a loan, or to… |
| Wyoming | 36% on first $1,000, 21% above, for loans up to $75,000. | Yes. |
Verified against state statutes and regulators; click a state for citations. Last verified 2026-10-25.
Why the same loan can have different caps
Personal loan rate limits are rarely a single number. States commonly set:
- Tiered caps by loan size. A higher rate on the first portion of a balance and a lower rate on larger amounts, or different caps for loans under and over a set dollar amount.
- Different caps by license. Banks, licensed consumer finance companies and small-loan lenders may each operate under different rules.
- Fee rules. Limits on origination fees, late fees and add-on products, which affect your APR.
- No cap above a threshold. Some states don't cap rates on larger loans, leaving the rate to the contract.
So the maximum rate in your state may depend on how much you borrow and from whom. For example, a state might allow a higher rate on a $1,000 loan than on a $5,000 loan, or apply one cap to licensed finance companies and another to banks.
Federal rate limits that apply everywhere
| Rule | Who it covers | Limit |
|---|---|---|
| Military Lending Act | Active-duty servicemembers and covered dependents | 36% Military APR, including most fees |
| NCUA loan rate ceiling | Federal credit union loans | 18% (temporary ceiling extended through September 10, 2027) |
Federal law doesn't set a general rate cap for other lenders; state law does. The Military Lending Act's 36% limit includes most fees and add-on products, not just interest, so it is broader than many state caps.
What borrowers actually pay
Caps are a ceiling, not a typical rate. The Federal Reserve's G.19 release reported an average commercial bank rate of 11.90% on 24-month personal loans for August 2026. Your rate depends on your credit, income, debts, the loan amount and term, and your state's rules. Here's how rate affects a $3,000 loan over 24 months:
| APR | Monthly payment | Total interest |
|---|---|---|
| 12% | $141.22 | $389.29 |
| 18% | $149.77 | $594.54 |
| 36% | $177.14 | $1,251.41 |
Within your state's cap, lenders set your rate based on your credit history, income, existing debts, the amount and the term. A shorter term, a lower requested amount, a co-applicant or collateral can each help you get a lower rate. Every offer shows its APR, payment and total to repay before you sign, so you can compare offers side by side. Try other amounts with the personal loan calculator, or see what lenders in your state can offer.
How APR caps translate into dollars
A rate cap is easier to understand in dollars. On a $1,000 loan repaid over 12 months in equal payments:
| APR | Monthly payment | Total interest |
|---|---|---|
| 18% | $91.68 | $100.16 |
| 28% | $96.51 | $158.07 |
| 36% | $100.46 | $205.55 |
Fees matter too. An origination fee is often deducted from the loan, so you may receive less than you borrow while paying interest on the full amount. That raises the APR, which is why the APR on your disclosure, not just the interest rate, is the number to compare with your state's cap.
Also check how a state's cap is defined. Some caps apply to the interest rate only; others include certain fees. Some apply per loan, others per license class. Your state page explains which.
Online lenders, bank partnerships and state caps
Online lenders generally must be licensed in your state and follow its caps. Some operate through partnerships with banks, which may be able to use the interest rates allowed in the bank's home state under federal banking law; this is an area of ongoing legal debate and state action. Other lenders have claimed tribal immunity from state law; in CFPB v. CashCall, a federal appeals court applied borrowers' state laws instead. Our network matches you with lenders that serve your state, and each offer discloses the lender's name, APR and terms before you sign. See tribal loans.
Payday and title loans are regulated separately
Many states regulate payday and title loans under separate laws with their own fee structures, apart from personal loan caps. If you're comparing those products, see payday loan laws by state and title loan laws by state. In states where payday loans aren't offered, a personal installment loan within the state's cap is often the way to borrow. Installment loans repay over months rather than in one payment, and through our network they range up to $5,000 depending on your state and the lender.
How to use this information
- Find your state in the table and note the cap for the amount you need.
- Request offers and compare each APR, monthly payment and total to repay.
- Choose the term that keeps your payment comfortable.
- If you have bad credit, read how to get a personal loan with bad credit.
Ready to see what lenders in your state can offer? See if you qualify — it takes about 3 minutes, and using our form is free.
How we keep this table accurate
We compile rate caps from state statutes and official guidance and show the date each state was last verified. Where a state uses tiered caps, we show the tiers that apply to common loan sizes from $500 to $5,000. Rate laws are complex and change, sometimes mid-year; this page is general information, not legal advice. Your state page always shows the latest verified rules. Spotted a change? Let us know through about us.
Frequently asked questions
What is the maximum interest rate on a personal loan?
It depends on your state, the loan size and the lender's license. Many states cap small loans around 36% APR or lower, some allow higher rates, and some don't cap larger loans at all. Covered military borrowers can't be charged more than a 36% Military APR. Check your state in the table.
Is there a federal cap on personal loan interest rates?
Not for most lenders. The Military Lending Act caps covered credit for active-duty servicemembers and dependents at a 36% Military APR, and the NCUA sets an 18% ceiling for most federal credit union loans through September 10, 2027. Otherwise, state law sets the limits.
Can an online lender charge more than my state's cap?
Generally, a lender licensed in your state must follow its caps. Some online loans are made through bank partnerships, which can affect which state's rate rules apply. Our network matches you with lenders that serve your state, and every offer shows its APR before you sign.
What is a good interest rate on a personal loan?
It depends on your credit. The Federal Reserve reported an average commercial bank rate of 11.90% on 24-month personal loans for August 2026. Borrowers with fair or bad credit usually pay more. Compare the APR, monthly payment and total to repay on each offer you receive.
Sources
- Federal Reserve — G.19 Consumer Credit
- NCUA — Board extends loan interest rate ceiling (2026)
- eCFR — 32 CFR Part 232 (Military Lending Act)
- U.S. Court of Appeals, 9th Cir. — CFPB v. CashCall opinion (May 23, 2022)