State Annual Percentage Rate (APR) Caps for $500, $2000

Home , Interest, Interest rate

State Annual Percentage Rate (APR) Caps For $500, $2,000 and $10,000 Installment Loans MedianMedian StateState APR* APR Limit Limit by by Size Size of of $500 Six-Month Loan LoanLoan InIn States that that Cap Cap Rates Rates* Maximum APR* in States with Cap (43 states plus DC)

NCNCNC - 16%16%16% 40% ARARAR - 17%17%17% VTVTVT - 24%24%24% 30% 36.5% HIHIHI - 25%25%25% 31% NYNYNY - 25%25%25% DCDCDC - 27%27%27% 20% 25% PAPAPA - 27%27%27% NDNDND - 28%28%28% MEMEME - 30%30%30% 10% NJNJNJ - 30%30%30% MDMDMD - 33%33%33% RIRIRI - 35%35%35% 0% AKAKAK - 36%36%36% $500 $2,000 $10,000 CTCTCT - 36%36%36% 6-month Loan 2-year Loan IAIA - 36% $2,000 5$10,000-year Loan IA 36%36% $500 MTMTMT - 36%36%36% 2-year Loan 5-year Loan NHNH - 6-month Loan NHNH 36%36%36% OROROR - 36%36%36% More than three quarters of the states cap the SDSDSD - 36%36%36% maximum annual percentage rate (APR) on VAVAVA - 36%36%36% small - to mid-size installment loans. For a $500 WYWYWY - 36%36%36% six-month loan, 44 states and DC limit the rate; COCOCO - 36%36%36% 42 states plus DC cap rates on a $2,000 two-year MAMAMA - 37%37%37% Median 36.5% loan; and 38 states plus DC do so for a $10,000 WVWVWV - 38%38%38% five-year loan. WAWAWAWA - 39%39%39% NVNVNV - 40%40%40% Voters, regardless of political party, strongly KSKSKS - 43%43%43% support rate caps. In the past ten years, MIMIMI - 43%43%43% overwhelming majorities in five states have CACACA - 45%45%45% capped rates at 36% or less: Arizona (2008), KYKYKY - 47%47%47% Colorado (2018), Montana (2010), Ohio (2008) FLFLFL - 48%48%48% and South Dakota (2016). NENENE - 48%48%48% MNMNMN - 51%51%51% There is a strong historic and contemporary AZAZAZ - 54%54%54% consensus that 36% should be the top rate for GAGAGA - 61%61%61% small loans. But for larger loans, 36% is a very ININININ - 71%71%71% high rate and most states impose lower caps. As SCSCSC - 72%72%72% the size of a loan increases, the maximum APR,* LALALA - 85%85%85% including fees, tends to decrease—from a median TXTXTX - 93%93%93% of 36.5% for a $500 five-year loan to 31% for a ALALAL - 94%94%94% $2,000 two-year loan to 25% for a $10,000 TNTNTN - 94%94%94% five-year loan. ILILILIL - 99%99%99% OKOKOK - 108%108%108% Some states have no rate cap at all. Depending MSMSMS - 305%305%305% on the size of the loan, 4 to 7 states only prohibit unconscionability, and 3 to 5 states have no limit. No cap except unconscionability:** ID, NM, UT, WI Interest rate limits are the simplest and most No cap: effective protection against predatory lending. DE, MO, OH* $2,000 Two-Year Loan $10,000 Five-Year Loan Maximum APR* in States with Cap Maximum APR* in States with Cap (42 states plus DC) (38 states plus DC)

ARARAR - 17%17% ARAR - 17% VTVTVT - 21%21% MEME - 18% MAMAMA - 24%24% VTVT - 18% PAPAPA - 24%24% MAMA - 20% CACACA - 25%25% COCO - 21% DCDCDC - 25%25% RIRI - 21% NYNYNY - 25%25% MNMN - 22% OKOKOK - 27%27% KSKS - 23% RIRIRI - 29%29% WYWY - 23% WAWAWA - 29%29% DCDC - 24% MEMEME - 30%30% FLFL - 24% MDMDMD - 30%30% HIHI - 24% MIMIMI - 30%30% KYKY - 24% NENENE - 30%30% NENE - 24% NJNJNJ - 30%30% AKAK - 25% AKAKAK - 31%31% CTCT - 25% COCOCO - 31%31% ININ - 25% FLFLFL - 31%31% MDMD - 25% Median 25% HIHIHI - 31%31% Median 31% NYNY - 25% - MNMNMN 31%31% OKOK - 25% - NCNCNC 31%31% MIMI - 26% - WYWYWY 31%31% MSMS - 26% - GAGAGA 32%32% PAPA - 26% - KSKSKS 32%32% TNTN - 26% - OH*OHOH 33%33% LALA - 27% WV - WVWV 33%33% NCNC - 27% TX - TXTX 35%35% WAWA - 27% IA - IAIA 36%36% WVWV - 27% CT - CTCT 36%36% AZAZ - 30% MTMT - 36% MT 36% NJNJ - 30% NHNH - 36% NH 36% TXTX - 30% OROR - 36% OR 36% IAIA - 32% SDSD - 36% SD 36% ILIL - 36% VAVA - 36% VA 36% MTMT - 36% LALA - 38% LA 38% NHNH - 36% ININ - 39% IN 39% OROR - 36% KYKYKY - 39% 39% SDSD - 36% NVNVNV - 40% 40% NVNV - 40% AZAZAZ - 41%41% GAGA - 60% TNTNTN - 41%41% MSMSMS - 59%59% ILILIL - 80%80% NMNMNM - 175%175%

No cap except unconscionability**: No cap except unconscionability:** AL, ID, SC, UT, WI AL, CA, ID, NM, SC, UT, WI No cap: No cap: DE, MO, ND 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.