What's the maximum personal loan APR?

The 35.99% effective ceiling reflects two pressures. First, payment-card networks (Visa, Mastercard) and most institutional lenders consider APRs above 36% to be predatory and avoid them. Second, federal regulators and Congress have repeatedly debated a 36% federal cap; lenders self-regulate near this level to avoid mandatory legislation.

State caps vary widely. Arkansas has a constitutional 17% cap that excludes most subprime lenders from the state. Colorado, California, and several others cap at 36%. About 26 states have no notable cap and rely on the federal ceiling and lender discretion.

For active-duty service members and covered dependents, the federal Military Lending Act caps Military APR (MAPR) at 36%. MAPR includes interest, fees, and certain credit-insurance premiums, so it can be a tighter constraint than an interest-only state cap.