Maryland Maximum Interest Rate: Usury Laws and Legal Limits — Best Proven Guide (2026)

Maryland maximum interest rate is the answer to “maximum interest rate allowed by law in Maryland”. This guide gives the Maryland 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 Maryland maximum interest rate figures on this page were verified against a dated 50-state compilation and Maryland sources as of October 2026; the statute named here is where to check them yourself.

What the Maryland Maximum Interest Rate Means

Usury means charging more interest than Maryland law allows. The legal rate applies only when a debt has no agreed rate, such as an old unpaid bill. The contract cap is the highest rate a lender may charge under Maryland’s general usury law when the borrower agrees to it in writing. Charging more than that cap is usury unless another statute allows a higher rate.

The Maryland maximum interest rate Figures

The Maryland maximum interest rate figures on this page were verified against a dated 50-state compilation and Maryland sources as of October 2026; the statute named here is where to check them yourself.

Who the Maryland Maximum Interest Rate Applies To

The general cap mainly applies to private and unlicensed lenders making loans under Maryland’s general interest subtitle. Banks chartered in other states and national banks can usually charge the rate their home state allows under federal law, not Maryland’s rate. Lenders licensed by Maryland for consumer loans follow the Consumer Loan Law instead.

For loans with an original principal of $2,000 or less, that law caps interest at 2.75% a month (33% a year) on the first $1,000 of the balance and 2% a month (24% a year) above that, under Md. Com. Law § 12-306. Credit cards usually fall under federal law or Maryland’s separate revolving-credit rules, not the general cap.

Credit Cards and the Maryland Maximum Interest Rate

Most credit cards come from national banks or banks chartered in other states. Federal law lets these banks charge the interest rate allowed in their home state and apply it to customers anywhere, including Maryland. So a card rate above Maryland’s general cap is usually legal. To confirm where your card issuer is based, check the cardholder agreement.

What Happens When a Lender Breaks the Maryland Maximum Interest Rate

Under Md. Com. Law § 12-114(a), a lender that breaks the usury rules generally cannot collect the excess interest and charges. The lender must also pay the borrower whichever is greater: three times the excess interest and charges it collected, or $500.

A claim generally fails if, within 30 days of the loan’s execution, the lender tells the parties about the problem and agrees to replace the rate with a legal one that does not exceed the stated rate. A separate misdemeanor (a fine up to $1,000, up to one year in jail, or both) covers violations of the disclosure rules in § 12-106, not usurious interest itself.

The Commissioner of Financial Regulation also says it is illegal to collect on loans above Maryland’s rate caps. Check the current statute or ask an attorney how these rules apply to a specific loan.

How to Check a Loan Against the Maryland Maximum Interest Rate

1) Find the loan agreement or Truth in Lending disclosure and look for the stated APR. 2) If no APR is listed, add up all interest and finance charges, divide by the amount borrowed, and adjust the result to a yearly rate. 3) Find out who made the loan.

It could be a private lender, a Maryland-licensed lender, an out-of-state bank or a card issuer, and the lender’s license search tells you which. 4) Compare the rate with the cap that applies to that kind of lender. 5) Confirm with the statute, the Commissioner’s office or an attorney.

Where to Report a Loan Above the Maryland Maximum Interest Rate

The Office of the Commissioner of Financial Regulation, part of the Maryland Department of Labor, licenses consumer lenders and takes complaints. Its website also has a license search tool. You can also file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.

Common Mistakes With Maryland 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 Maryland maximum interest rate in Maryland

You do not have to handle this alone or pay to get answers. The Maryland 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 Maryland 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 Maryland maximum interest rate Figures

Every figure in the table above comes from our 50-state data file, built by reading the Maryland 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.

Maryland effectively bans storefront payday lending. The Commissioner’s position is that loans to Maryland residents must follow the Consumer Loan Law caps, including loans made online by out-of-state lenders. Lenders that are not licensed generally cannot collect interest above Maryland’s caps.

Next rung: the Maryland payday loan page covers the short-term loans that have their own caps.

Maryland Maximum Interest Rate FAQ

What is the maximum interest rate allowed by law in Maryland?

Without an agreement: 6% per year. In a written contract: 8% per year in a written agreement.

Official Maryland 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
• Maryland statute / opinion: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl&section=12-114&enactments=false
• Maryland Department of Labor – Office of the Commissioner of Financial Regulation: https://www.labor.maryland.gov/finance/advisories/advisory7-09a.shtml
• Consumer Financial Protection Bureau: consumerfinance.gov

This Maryland maximum interest rate guide was last verified against official Maryland sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.

More Maryland Money Rights Guides

• Maryland Payday Loan Laws
• Maryland Judgment Expiration
• Money Rights Guides for All 50 States

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.