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Usury Laws in Maryland

In Maryland, interest is generally limited to 6% a year, or 8% with a written agreement signed by the borrower (up to 24% on some unsecured loans that meet statutory conditions), and judgments bear 10%.

Last checked . General information, not legal advice.

Maryland at a glance

Maximum agreed rate
8% (written agreement)
Unsecured loans and loans secured by non-savings collateral may reach 24% if the conditions in Com. Law 12-103(a)(3) are met.
Legal rate (no rate agreed)
6%
Without a written rate, a loan may not exceed 6% simple interest. Judgments bear 10% (Cts. and Jud. Proc. 11-107).

Sources

Last checked

The rules in Maryland

What is the maximum interest rate on a private loan in Maryland?

Maximum agreed rate in Maryland: 8% (written agreement). Unsecured loans and loans secured by non-savings collateral may reach 24% if the conditions in Com. Law 12-103(a)(3) are met.

What interest rate applies in Maryland when no rate was agreed?

Legal rate (no rate agreed) in Maryland: 6%. Without a written rate, a loan may not exceed 6% simple interest. Judgments bear 10% (Cts. and Jud. Proc. 11-107).

Where do the Maryland usury laws come from?

The rules above come from Md. Code, Com. Law 12-102, Md. Code, Com. Law 12-103 and Md. Code, Cts. and Jud. Proc. 11-107. Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Put the interest rate in writing. Many usury statutes set one limit for written agreements and a different, often lower, rate when nothing was agreed in writing. A signed promissory note or loan agreement that states the rate, the payment schedule and what happens on late payment avoids most disputes.

Count every charge, not only the stated rate. Courts may treat fees, points, required extras or a discount taken from the amount lent as interest when deciding whether a loan is usurious. A loan with a modest rate and large fees can still cross the limit.

Check who the lender is and what the loan is for. Usury limits often do not apply, or apply differently, to banks, licensed consumer lenders, credit card issuers, larger loans and loans to businesses or corporations. A rule written for loans between individuals may not cover your situation, so read the statute and its exceptions.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.