Connecticut maximum interest rate is the answer to “maximum interest rate allowed by law in Connecticut”. This guide gives the Connecticut figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Connecticut maximum interest rate figures on this page were verified against a dated 50-state compilation and Connecticut sources as of October 2026; the statute named here is where to check them yourself.
Connecticut maximum interest rate at a Glance
| Legal rate when no rate is agreed | 8% legal rate |
| Maximum rate in a written contract | 12% per year |
| Criminal usury threshold | charging more than 12% can bring a fine of up to $1,000, imprisonment, or both |
| Statute | Conn. Gen. Stat. 37-1, 37-4 |
In This Connecticut maximum interest rate Guide:
What the Connecticut Maximum Interest Rate Means
Usury means charging more interest than Connecticut law allows on a loan. The legal rate is a default: it applies only when a debt has no agreed rate, and interest at that rate is added to the debt once it is past due.
The contract cap is the ceiling for rates written into a loan agreement, and charges for checking your credit, arranging the loan or collecting payments count toward that cap (Conn. Gen. Stat. 37-6).
The Connecticut maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 8% legal ratecompilation / agency — verified Oct 2026 |
| Maximum rate in a written contract | 12% per yearcompilation / agency — verified Oct 2026 |
| Criminal usury threshold | charging more than 12% can bring a fine of up to $1,000, imprisonment, or bothcompilation / agency — verified Oct 2026 |
| Statute | Conn. Gen. Stat. 37-1, 37-4compilation / agency — verified Oct 2026 |
The Connecticut maximum interest rate figures on this page were verified against a dated 50-state compilation and Connecticut sources as of October 2026; the statute named here is where to check them yourself.
Who the Connecticut Maximum Interest Rate Applies To
The cap mainly covers private lenders and individuals who make loans that no exemption reaches. Banks with a Connecticut branch and their subsidiaries (except on consumer loans), Connecticut and federal credit unions, real-estate mortgages over $5,000, and business loans over $10,000 that meet set conditions are exempt (Conn. Gen. Stat. 37-9). Licensed small-loan lenders follow their own APR limits, explained below.
Credit cards issued by out-of-state national banks generally follow federal law.
Credit Cards and the Connecticut Maximum Interest Rate
Most credit cards come from national banks. Federal law lets a national bank charge the interest rate its home state allows, even to customers in other states. So a card issued by a bank based in a state with no cap, or a high one, can usually charge you more than Connecticut’s cap.
What Happens When a Lender Breaks the Connecticut Maximum Interest Rate
Connecticut’s remedy is strict. On a loan barred by the usury statutes, the lender generally cannot go to court to collect the principal, the interest, or any part of either (Conn. Gen. Stat. 37-8). Courts have held that knowingly taking more than the allowed interest is usury even if the lender did not mean to break the law. Violations are also a crime under Conn. Gen. Stat. 37-7.
A small loan that breaks the licensing rules is void, and no one may collect principal, interest or fees on it (Conn. Gen. Stat. 36a-558(c)).
How to Check a Loan Against the Connecticut Maximum Interest Rate
1) Find the APR in your loan papers or Truth in Lending disclosure. 2) If no APR is listed, add up the interest plus any credit-check, arranging or collection fees for one year and divide by the amount you borrowed. 3) Check who the lender is: a bank, credit union or licensed small-loan company may follow different limits.
4) Compare the result with the cap, and confirm with the statute, the court clerk or an attorney.
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Where to Report a Loan Above the Connecticut Maximum Interest Rate
The Connecticut Department of Banking (Consumer Credit Division) licenses consumer lenders and takes complaints about them. You may also file a complaint with the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Common Mistakes With Connecticut maximum interest rate
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Connecticut maximum interest rate in Connecticut
You do not have to handle this alone or pay to get answers. The Connecticut court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Connecticut bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Connecticut maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Connecticut statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
A lender making small loans to Connecticut borrowers needs a Department of Banking license. For loans under $5,000, the APR may not exceed the lower of 36% or the federal Military Lending Act limit; for loans from $5,000 to $50,000, the limit is 25% (Conn. Gen. Stat. 36a-556, 36a-558; current law, with the $50,000 ceiling set by P.A. 23-126). These limits also apply to online lenders.
Next rung: the Connecticut payday loan page covers the short-term loans that have their own caps.
Connecticut — the bottom line
- Connecticut maximum interest rate rules set two numbers — the legal rate and the written-contract cap — both in the table above.
- Many lenders sit outside the Connecticut maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Connecticut maximum interest rate rules, keep the agreement and report it to the state regulator.
Connecticut Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Connecticut?
Without an agreement: 8% legal rate. In a written contract: 12% per year.
Is there a criminal usury law in Connecticut?
charging more than 12% can bring a fine of up to $1,000, imprisonment, or both
Official Connecticut Sources & Resources
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
- Connecticut statute / opinion: https://www.cga.ct.gov/current/pub/chap_673.htm
- Connecticut Department of Banking: https://portal.ct.gov/dob
- Consumer Financial Protection Bureau: consumerfinance.gov
This Connecticut maximum interest rate guide was last verified against official Connecticut sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
More Connecticut Money Rights Guides
Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.