Loan Options in Maryland

Maryland sets one of the strictest interest caps in the country. Maryland Commercial Law § 12-306 limits licensed consumer lenders to 2.75% per month-33% APR-on loans of $6,000 or less. That ceiling makes the triple-digit rates typical of payday loans illegal. Any company offering you a "payday loan" or "cash advance" at rates above 33% APR is breaking Maryland law, whether they operate online or out of state.

Installment loans are available from lenders licensed by the Maryland Office of Financial Regulation. These loans must follow the same rate cap and other consumer protections in Maryland's Consumer Loan Law. For how installment loans work and what they cost, see the Maryland installment loans and rates & fees pages.

• Strict interest cap on small loans. The 33% APR ceiling blocks the 300%–600% rates common in payday-lending states. You're far less likely to end up in a debt trap caused by compounding interest charges.
• Licensing requirement for consumer lenders. Anyone making consumer loans in Maryland must hold a license from the Office of Financial Regulation. You can verify a lender's license through NMLS Consumer Access before sharing personal or financial information.
• Prohibition on evasion schemes. Maryland law applies to any lender serving Maryland residents, including online and out-of-state companies. If an online lender offers you a loan at rates far above 33% APR, that loan likely violates state law-and you can file a complaint with the OFR.
• Right to file complaints. The OFR accepts consumer complaints against financial-services companies. If a lender misrepresents terms or charges illegal fees, you have a clear path to seek regulatory help at the OFR complaint page.

Before sharing personal information with any lender-especially one that contacts you first-review the LendUp scams & safety guide and confirm the company's license through the regulator.