State Annual Percentage Rate (APR) Caps For $500, $2,000 and ... - NCLC

State Annual Percentage Rate (APR) Caps For

$500, $2,000 and $10,000 Installment Loans

Median State

Size

of of

Median

StateAPR*

APRLimit

Limitbyby

Size

Loan In

In States

States that

Rates

Loan

thatCap

Cap

Rates*

40%

30%

20%

36.5%

31%

25%

10%

0%

0 an

$500

00 an

0$2,000

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$10,000

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0

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$ L Loan 2 2-year

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More than three quarters of the states cap the

maximum annual percentage rate (APR) on

small - to mid-size installment loans. For a $500

six-month loan, 44 states and DC limit the rate;

42 states plus DC cap rates on a $2,000 two-year

loan; and 38 states plus DC do so for a $10,000

five-year loan.

Voters, regardless of political party, strongly

support rate caps. In the past ten years,

overwhelming majorities in five states have

capped rates at 36% or less: Arizona (2008),

Colorado (2018), Montana (2010), Ohio (2008)

and South Dakota (2016).

There is a strong historic and contemporary

consensus that 36% should be the top rate for

small loans. But for larger loans, 36% is a very

high rate and most states impose lower caps. As

the size of a loan increases, the maximum APR,*

including fees, tends to decrease¡ªfrom a median

of 36.5% for a $500 five-year loan to 31% for a

$2,000 two-year loan to 25% for a $10,000

five-year loan.

Some states have no rate cap at all. Depending

on the size of the loan, 4 to 7 states only prohibit

unconscionability, and 3 to 5 states have no limit.

Interest rate limits are the simplest and most

effective protection against predatory lending.

$500 Six-Month Loan

Maximum APR* in States with Cap

(43 states plus DC)

NC NC

NC

NC

AR

AR AR

AR

VT

VT

VTVT

HI

HI

HIHI

NY

NY NY

NY

DC DC

DC

DC

PA PA

PA

PA

ND ND

ND

ND

ME ME

ME

ME

NJ

NJ

NJNJ

MD

MD

MDMD

RI

RI

RIRI

AK AK

AK

AK

CT

CT

CTCT

IA

IA

IAIA

MT MT

MT

MT

NH NH

NH

NH

OR OR

OR

OR

SD SD

SD

SD

VA VA

VA

VA

WY

WY

WYWY

CO CO

CO

CO

MA MA

MA

MA

WV WV

WV

WV

WA WA

WA

WA

NV

NV NV

NV

KS KS

KS

KS

MI

MI

MIMI

CA CA

CA

CA

KY KY

KY

KY

FL

FL

FLFL

NE NE

NE

NE

MN MN

MN

MN

AZ

AZ

AZAZ

GA GA

GA

GA

IN

IN

ININ

SC SC

SC

SC

LA LA

LA

LA

TX

TX

TXTX

AL

AL

AL

AL TN

TN

TNTN

IL

ILIL

ILOK OK

OK

OK

MS

MS

MSMS

16%

16%

16%

17%

17%

17%

24%

24%

24%

25%

25%

25%

25%

25%

25%

27%

27%

27%

27%

27%

27%

28%

28%

28%

30%

30%

30%

30%

30%

30%

33%

33%

33%

35%

35%

35%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

37%

37%

37%

38%

38%

38%

39%

39%

39%

40%

40%

40%

43%

43%

43%

43%

43%

43%

45%

45%

45%

47%

47%

47%

48%

48%

48%

48%

48%

48%

51%

51%

51%

54%

54%

54%

61%

61%

61%

71%

71%

71%

72%

72%

72%

85%

85%

85%

93%

93%

93%

94%

94%

94%

94%

94%

94%

99%

99%

99%

108%

108%

108%

Median 36.5%

305%

305%

305%

No cap except unconscionability:**

ID, NM, UT, WI

No cap:

DE, MO, OH*

$2,000 Two-Year Loan

Maximum APR* in States with Cap

(42 states plus DC)

AR AR

AR

VT VT

VT

MA MA

MA

PA PA

PA

CA CA

CA

DC DC

DC

NY NY

NY

OK OK

OK

RI RI

RI

WA WA

WA

ME ME

ME

MD MD

MD

MI MI

MI

NE

NE

NE NJ NJ

NJ

AK

AK

AK CO CO

CO

FL FL

FL

HI HI

HI

MN

MN

MN NC NC

NC

WY WY

WY

GA GA

GA

KS KS

KS

OH OH

*OH

WV WV

WV

TX TX

TX

IA IA

IA

CT CT

CT

MT MT

MT

NH NH

NH

OR OR

OR

SD SD

SD

VA VA

VA

LA LA

LA

IN IN

IN

KY KY

KY

NV NV

NV

AZ AZ

AZ

TN TN

TN

MS

MS

MS IL IL

IL

NM

NM

NM -

17%

17%

21%

21%

24%

24%

24%

24%

25%

25%

25%

25%

25%

25%

27%

27%

29%

29%

29%

29%

30%

30%

30%

30%

30%

30%

30%

30%

30%

30%

31%

31%

31%

31%

31%

31%

31%

31%

31%

31%

31%

31%

31%

31%

32%

32%

32%

32%

33%

33%

33%

33%

35%

35%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

36%

38%

38%

39%

39%

39%

39%

40%

40%

41%

41%

41%

41%

59%

59%

80%

80%

Median 31%

$10,000 Five-Year Loan

Maximum APR* in States with Cap

(38 states plus DC)

AR AR

ME ME

VT VT

MA

MA CO CO

RIRI MN MN

KS KS

WY WY

DC DC

FL FL

HIHI KY KY

NE NE

AK AK

CT CT

ININ MD MD

NY NY

OK OK

MI MI

MS MS

PA PA

TN TN

LA LA

NC NC

WA WA

WV WV

AZ AZ

NJ NJ

TX TX

IAIA ILIL MT MT

NH NH

OR OR

SD SD

NV NV

GA GA

17%

18%

18%

20%

21%

21%

22%

23%

23%

24%

24%

24%

24%

24%

25%

25%

25%

25%

25%

25%

26%

26%

26%

26%

27%

27%

27%

27%

30%

30%

30%

32%

36%

36%

36%

36%

36%

40%

Median 25%

60%

175%

175%

No cap except unconscionability**

:

AL, ID, SC, UT, WI

No cap:

DE, MO, ND

No cap except unconscionability:**

AL, CA, ID, NM, SC, UT, WI

No cap:

DE, MO, ND, OH,* VA

*APRs are based on calculations done in 2017 for $500 loans and in 2018 for $2,000 and $10,000 loans, except that

the rate for a $500 loan in Colorado reflects the 2018 voter initiative. Ohio¡¯s 2019 rates have not been calculated. The

current maximum APR in some states may have changed due to changes in the law and other variables. Rates are

for closed-end loans. Rates will differ for lines of credit and other open-end credit.

** Unconscionability refers to rates that are so high that they shock the conscience.

? 2019, National Consumer Law Center

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