Original research · State law and NCLC data
Personal loan interest rate caps by state, 2026
The highest APR a licensed non-bank lender can charge on a personal loan in every state, for a $500 six-month loan and a $2,000 two-year loan, with each state's main rule and the statute behind it.
Published October 1, 2026 · Download the CSV · How to cite
Key findings
31 states + DC
cap a $2,000 two-year loan at 36% APR or less. Arkansas is lowest at 17%.
7 states
set no numeric cap on a $2,000 loan: Alabama, Delaware, Idaho, Missouri, South Carolina, Utah and Wisconsin.
305%
The highest capped APR on a $500 loan, in Mississippi. 8 states allow more than 100% on that loan.
246 points
The widest gap between the $500 and $2,000 caps, in Mississippi (305% vs 59%). Small loans usually carry fees that push the APR up.
19 states + DC
hold a $500 six-month loan to 36% APR or less, the level the Military Lending Act sets for service members.
Fees count
These are APRs, which include origination and other fees, so they can be higher than a state's stated interest rate.
Maximum APR on a $2,000 two-year loan
Each square is a state. The number is the highest APR a licensed non-bank lender can charge, including fees.
Source: National Consumer Law Center, State APR Caps fact sheet, December 2025 (as of September 2025). Map by Smart Debt Relief.
Full table: maximum APR by state
Click a column header to sort. "No cap*" means no numeric limit, only a ban on rates a court finds unconscionable. Select a state for its full rules and statute.
| State | $500, 6 months | $2,000, 2 years | State license required |
|---|---|---|---|
| Arkansas | 17% | 17% | See state rules |
| Vermont | 24% | 21% | Yes |
| District of Columbia | 24% | 24% | See state rules |
| Massachusetts | 37% | 24% | Yes |
| Pennsylvania | 27% | 24% | Yes |
| Rhode Island | 30% | 24% | Yes |
| California | 45% | 25% | Yes |
| New York | 25% | 25% | Yes |
| Washington | 39% | 29% | Yes |
| Maryland | 33% | 30% | Yes |
| Maine | 30% | 30% | Yes |
| Michigan | 43% | 30% | Yes |
| Nebraska | 48% | 30% | Yes |
| New Jersey | 30% | 30% | Yes |
| Alaska | 36% | 31% | Yes |
| Colorado | 78% | 31% | Yes |
| Hawaii | 146% | 31% | Yes |
| Ohio | 145% | 31% | Yes |
| Wyoming | 36% | 31% | Yes |
| Georgia | 61% | 32% | Yes |
| Minnesota | 51% | 33% | Yes |
| West Virginia | 38% | 33% | Yes |
| North Carolina | 16% | 35% | Yes |
| Connecticut | 36% | 36% | Yes |
| Iowa | 36% | 36% | See state rules |
| Illinois | 36% | 36% | Yes |
| Montana | 36% | 36% | Yes |
| North Dakota | 36% | 36% | Yes |
| New Hampshire | 36% | 36% | Yes |
| New Mexico | 52% | 36% | Yes |
| Oregon | 36% | 36% | Yes |
| South Dakota | 36% | 36% | Yes |
| Florida | 52% | 37% | Yes |
| Texas | 116% | 37% | Yes |
| Kansas | 43% | 38% | Yes |
| Louisiana | 85% | 38% | Yes |
| Indiana | 89% | 40% | Yes |
| Nevada | 40% | 40% | Yes |
| Arizona | 54% | 41% | Yes |
| Kentucky | 47% | 42% | Yes |
| Tennessee | 114% | 49% | Yes |
| Virginia | 129% | 50% | Yes |
| Oklahoma | 204% | 56% | Yes |
| Mississippi | 305% | 59% | Yes |
| Alabama | 107% | No cap* | Yes |
| Idaho | No cap* | No cap* | Yes |
| South Carolina | 72% | No cap* | Yes |
| Utah | No cap* | No cap* | Yes |
| Wisconsin | No cap* | No cap* | Yes |
| Delaware | No cap | No cap | Yes |
| Missouri | No cap | No cap | Yes |
APR includes fees, for closed-end unsecured loans from licensed non-bank lenders. Source: National Consumer Law Center, December 2025 (as of September 2025). Iowa's figure reflects a rate rule scheduled to be replaced on October 21, 2026.
Where the 36% line holds
31 states plus DC keep a $2,000 two-year loan at or below 36% APR, fees included. The strictest are Arkansas, Vermont, District of Columbia and Massachusetts, all at 24% or less. South Dakota's 36% cap came from a 2016 ballot measure (Initiated Measure 21) and counts all fees in the limit.
Where small loans cost the most
The rules loosen sharply for small loans. On a $500 six-month loan, 8 states allow more than 100% APR: Alabama, Hawaii, Mississippi, Ohio, Oklahoma, Tennessee, Texas and Virginia. The highest is Mississippi at 305%. Typically the stated interest rate is lower, but per-loan fees and monthly charges are allowed on top, and on a small balance those fees drive the APR up.
The biggest gaps between the $500 and $2,000 limits:
- Mississippi: 305% on $500 vs 59% on $2,000
- Oklahoma: 204% on $500 vs 56% on $2,000
- Hawaii: 146% on $500 vs 31% on $2,000
- Ohio: 145% on $500 vs 31% on $2,000
- Texas: 116% on $500 vs 37% on $2,000
States with no cap
Delaware and Missouri set no limit at all on these loans. Alabama, Idaho, South Carolina, Utah and Wisconsin only bar rates that are unconscionable, a standard decided case by case in court. In these states the APR you are offered is whatever the lender sets, so comparing written offers matters more.
What this means if you are consolidating debt
A consolidation loan only helps if its APR is clearly below what you pay on your cards. In a state with a high cap or none, a lender can legally offer a loan that costs more than your cards. Compare the APR, origination fee and total repayment in writing, and use the payoff calculator to check the difference. How to compare loan offers.
Methodology
- Maximum APR figures: National Consumer Law Center, "State Annual Percentage Rate (APR) Caps for $500, $2,000 and $10,000 Installment Loans", December 2025, current as of September 2025. NCLC computes the highest APR, including fees, a licensed non-bank lender may charge on a closed-end unsecured loan of each size.
- Rules, statutes and licensing: compiled by Smart Debt Relief from state statutes and regulator publications, checked on September 30, 2026. Each state's page lists its sources.
- Cross-check: every APR figure in our state research was compared against the NCLC fact sheet; all matched.
- Limits: banks and some bank-partnered lenders may follow their home state's rules instead. Rules change, and some dollar thresholds adjust each year for inflation. This is general information, not legal advice.
Use this data
The APR figures are the National Consumer Law Center's; cite NCLC for them. Our compilation (the state rules, citations, map, table and commentary) is released under a Creative Commons Attribution 4.0 licence. You can reuse it with a link to this page. Suggested citation:
Source: National Consumer Law Center, State APR Caps fact sheet (December 2025). Compiled by Smart Debt Relief, "Personal Loan Interest Rate Caps by State, 2026", https://smartdebtrelief.org/research/personal-loan-interest-rate-caps-by-state/.
Download the CSV (50 states plus DC, 8 columns). Questions about the compilation: help@smartdebtrelief.org.
Frequently asked questions
What is the maximum interest rate on a personal loan by state?
It depends on the state and the loan size. On a $2,000, two-year loan from a licensed non-bank lender, the cap ranges from 17% in Arkansas to 59% in Mississippi, and 7 states set no numeric cap at all.
Which states have no interest rate cap on personal loans?
For a $2,000 loan: Alabama, Delaware, Idaho, Missouri, South Carolina, Utah and Wisconsin. Delaware and Missouri set no limit; the others only bar rates a court finds unconscionable. For a $500 loan the list is Delaware, Idaho, Missouri, Utah and Wisconsin.
How many states cap personal loans at 36%?
31 states plus DC cap a $2,000 two-year loan at 36% APR or less, and 19 states plus DC do for a $500 six-month loan. 36% is the rate consumer advocates and the federal Military Lending Act treat as the upper limit for small loans.
Do these caps apply to banks and online lenders?
They apply to state-licensed non-bank lenders. Banks can often export the interest rate allowed in their home state, and some online lenders partner with banks, so a loan offered in your state may not follow these caps. Always compare the APR in writing before you accept.
Where does this data come from?
The maximum APR figures are from the National Consumer Law Center's December 2025 fact sheet (current as of September 2025), which includes fees in the APR. We added each state's main rate rule, statute citation and licensing requirement from state law, checked on September 30, 2026, and cross-checked every figure against the fact sheet.