Illinois maximum interest rate is the answer to “maximum interest rate allowed by law in Illinois”. This guide gives the Illinois 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 Illinois maximum interest rate figures on this page were verified against a dated 50-state compilation and Illinois sources as of October 2026; the statute named here is where to check them yourself.
Illinois maximum interest rate at a Glance
| Legal rate when no rate is agreed | 5% per year without a written contract |
| Maximum rate in a written contract | 9% per year in a written contract |
| Who the cap does not reach | many licensed lenders are covered by separate rate rules |
| Statute | 815 ILCS 205/2, 205/4 |
In This Illinois maximum interest rate Guide:
What the Illinois Maximum Interest Rate Means
Usury means charging more interest than Illinois law allows. The Interest Act sets two different figures. The legal rate is a default that applies when the parties never agreed on a rate in writing. The contract cap is the most a lender may charge under a written agreement, unless a specific exemption or a separate licensing law applies.
The Illinois maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 5% per year without a written contractcompilation / agency — verified Oct 2026 |
| Maximum rate in a written contract | 9% per year in a written contractcompilation / agency — verified Oct 2026 |
| Who the cap does not reach | many licensed lenders are covered by separate rate rulescompilation / agency — verified Oct 2026 |
| Statute | 815 ILCS 205/2, 205/4compilation / agency — verified Oct 2026 |
The Illinois maximum interest rate figures on this page were verified against a dated 50-state compilation and Illinois sources as of October 2026; the statute named here is where to check them yourself.
Who the Illinois Maximum Interest Rate Applies To
The Interest Act cap mainly covers private and non-exempt lenders who are not working under another rate law. Banks, savings banks, credit unions and insurance companies are generally exempt, and banks chartered in other states may often use their home-state rates. Licensed consumer lenders, such as installment, payday and title lenders, follow their own licensing acts.
Most of them are also limited by the Predatory Loan Prevention Act’s 36% all-in APR cap on consumer loans made on or after March 23, 2021. Most commercial or business loans are exempt.
Credit Cards and the Illinois Maximum Interest Rate
Most credit cards come from national or out-of-state banks. Federal banking law lets those banks charge the interest rate allowed in their home state to borrowers anywhere in the country. Because of that, a card rate above the Illinois figure is usually legal. Illinois’s 36% Predatory Loan Prevention Act cap also does not apply to consumer loans made by banks or credit unions.
What Happens When a Lender Breaks the Illinois Maximum Interest Rate
When a loan breaks the cap, the borrower may be able to recover the excess interest or more, depending on the statute, and charging above a criminal threshold can be a crime.
How to Check a Loan Against the Illinois Maximum Interest Rate
1) Find the APR on the federal Truth in Lending disclosure in your loan papers. 2) Write down who made the loan (a bank, a credit union, a licensed lender or a private person) and whether it was for personal or business use. 3) For a consumer loan from a non-bank lender, compare the all-in APR, fees included, with the 36% Predatory Loan Prevention Act cap.
4) For a private written loan, compare the rate with the Interest Act cap. 5) Confirm with the statute, the IDFPR or an attorney.
Where to Report a Loan Above the Illinois Maximum Interest Rate
The Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions, licenses consumer lenders and takes complaints about them. Complaints about banks, card issuers and other lenders can also go to the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Common Mistakes With Illinois 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.
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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 Illinois maximum interest rate in Illinois
You do not have to handle this alone or pay to get answers. The Illinois 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 Illinois 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 Illinois maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Illinois 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.
The Predatory Loan Prevention Act (815 ILCS 123) measures its 36% cap with the Military Lending Act’s all-in APR, which counts many fees. IDFPR rules in effect since August 1, 2022 require covered lenders to give borrowers a separate, signed rate-cap disclosure. IDFPR has said the Act can also reach pawn transactions, earned wage access and income share agreements.
Under 815 ILCS 205/7, a usury defense must be raised in a plea or written notice filed in the court case.
Next rung: the Illinois payday loan page covers the short-term loans that have their own caps.
Illinois — the bottom line
- Illinois 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 Illinois maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Illinois maximum interest rate rules, keep the agreement and report it to the state regulator.
Illinois Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Illinois?
Without an agreement: 5% per year without a written contract. In a written contract: 9% per year in a written contract.
Official Illinois 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
- Illinois statute / opinion: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2329&ChapterID=67
- Illinois Department of Financial and Professional Regulation – Consumer FAQ on the Predatory Loan Prevention Act: https://www.illinois.gov/content/dam/soi/en/web/illinois/iisnewsattachments/23232-idfpr-releases-consumer-frequently-asked-questions-about-the-predatory-loan-prevention-act.pdf
- Consumer Financial Protection Bureau: consumerfinance.gov
This Illinois maximum interest rate guide was last verified against official Illinois sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
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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.