Montana maximum interest rate is the answer to “maximum interest rate allowed by law in Montana”. This guide gives the Montana 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 Montana maximum interest rate figures on this page were verified against a dated 50-state compilation and Montana sources as of October 2026; the statute named here is where to check them yourself.
Montana maximum interest rate at a Glance
| Legal rate when no rate is agreed | 10% per year |
| Maximum rate in a written contract | 15% per year in a written agreement |
| Statute | MCA 31-1-106, 31-1-107 |
In This Montana maximum interest rate Guide:
What the Montana Maximum Interest Rate Means
Usury means charging more interest than Montana law allows. Montana has two separate limits. The legal rate applies on its own when a debt carries interest but no rate was agreed. The contract cap is the most that a lender and borrower may agree to in writing. A rate above the cap is generally usurious unless the lender falls under an exemption.
The Montana maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 10% per yearcompilation / agency — verified Oct 2026 |
| Maximum rate in a written contract | 15% per year in a written agreementcompilation / agency — verified Oct 2026 |
| Statute | MCA 31-1-106, 31-1-107compilation / agency — verified Oct 2026 |
The Montana maximum interest rate figures on this page were verified against a dated 50-state compilation and Montana sources as of October 2026; the statute named here is where to check them yourself.
Who the Montana Maximum Interest Rate Applies To
The general cap mainly covers private lenders, individuals and businesses that are not regulated lenders. Banks, savings and loans, credit unions and other regulated lenders are generally exempt from Montana’s usury limits under MCA 31-1-112. Banks chartered in other states can usually use their home-state rules under federal law. Licensed consumer lenders, payday (deferred deposit) lenders and title lenders are not exempt.
Since 2011 they have been limited to 36% a year in interest under MCA 32-5-301, not counting certain authorized fees. Merchant-to-merchant financing is also exempt under MCA 31-1-112(2).
Credit Cards and the Montana Maximum Interest Rate
Most credit cards are issued by national or out-of-state banks. Federal law lets those banks charge the interest rate allowed in their home state and apply it to customers anywhere. So a card rate above the Montana cap is usually legal. Montana-chartered banks are also generally exempt from the state usury limits as regulated lenders.
What Happens When a Lender Breaks the Montana Maximum Interest Rate
Under MCA 31-1-108, a lender that charges, receives or agrees to a rate above what the law allows forfeits double the interest on the debt. If a borrower has already paid the excess interest, they may recover twice that amount. To do so, they generally must make a written demand first and bring the action within 2 years of the payment. No criminal usury threshold appears in these sections.
Confirm details with the statute, the court clerk or an attorney.
How to Check a Loan Against the Montana Maximum Interest Rate
1) Find the loan agreement and look for the stated annual percentage rate (APR) or interest rate. 2) If there is only a dollar finance charge, divide the yearly interest by the amount borrowed. 3) Check whether the lender is a bank, credit union or licensed consumer lender, because different limits apply to each. 4) Compare the yearly rate with the limit for that type of lender.
Confirm the result with the Division of Banking or an attorney.
Where to Report a Loan Above the Montana Maximum Interest Rate
The Montana Division of Banking and Financial Institutions licenses consumer lenders, payday lenders and title lenders and accepts complaints about them. Complaints about banks and other lenders can also go to the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
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Common Mistakes With Montana 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 Montana maximum interest rate in Montana
You do not have to handle this alone or pay to get answers. The Montana 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 Montana 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 Montana maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Montana 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 written-contract limit is actually the greater of the stated cap or 6 percentage points above the prime rate of major New York banks, as published in the Wall Street Journal 3 business days before the contract is made (MCA 31-1-107). Consumer loan, payday and title lenders lost their usury exemption through voter Initiative 164 in 2010 (MCA 31-1-112).
Next rung: the Montana payday loan page covers the short-term loans that have their own caps.
Montana — the bottom line
- Montana 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 Montana maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Montana maximum interest rate rules, keep the agreement and report it to the state regulator.
Montana Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Montana?
Without an agreement: 10% per year. In a written contract: 15% per year in a written agreement.
Official Montana 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
- Montana statute / opinion: https://mca.legmt.gov/bills/mca/title_0310/chapter_0010/part_0010/section_0070/0310-0010-0010-0070.html
- Montana Division of Banking and Financial Institutions: https://banking.mt.gov/
- Consumer Financial Protection Bureau: consumerfinance.gov
This Montana maximum interest rate guide was last verified against official Montana 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.