Payday Loans in Maryland: The 33% Cap and What You Can Borrow
Page last reviewed: October 29, 2026 · Reviewed for accuracy by Betty Walsh
No. Maryland's Consumer Loan Law caps interest at 33% a year on the first $1,000 of loans up to $2,000, far below payday rates, so licensed lenders can't make payday loans. You can get an installment loan from a licensed lender at those capped rates.
| Payday loans | Ruled out: payday rates break the Consumer Loan Law caps |
| Rate cap | 33% a year on the first $1,000 of loans up to $2,000; 24% otherwise |
| Example | $1,000 over 12 months: $98.97 a month at the 33% cap |
| Longest term | 72 months and 15 days on loans of $2,000 or more |
| You need | ID, proof of income and a bank account |
What Maryland Lenders Can Charge, by Loan Size
| Loan | Maximum rate | Longest term |
|---|---|---|
| $700 or less | 33% a year | 30 mo, 15 days |
| Over $700, under $2,000 | 33% to $1,000, then 24% | 36 mo, 15 days |
| $2,000 | 33% to $1,000, then 24% | 72 mo, 15 days |
| Over $2,000 to $25,000 | 24% a year | 72 mo, 15 days |
| Loan | Payments | Interest | APR |
|---|---|---|---|
| $500, 6 mo | 6 × $91.54 | $49 | ~33% |
| $1,000, 12 mo | 12 × $98.97 | $188 | ~33% |
| $2,000, 24 mo | 24 × $112.08 | $690 | ~30% |
| $5,000, 36 mo | 36 × $196.16 | $2,062 | ~24% |
Worked out from Maryland law at the most a Consumer Loan Law lender can charge, not offers from lenders in our network; a lender can charge less.
Interest runs only on the unpaid balance, and other charges are few, such as up to $15 for a check that bounces on the second presentment. Some lenders use Maryland's Credit Grantor rules instead, at up to 24% simple interest a year. OFR says the caps apply to loans of $25,000 or less, subject to certain exceptions.
Void Over the Cap: Payday and Online Loans in Maryland
The Consumer Loan Law covers any loan of $25,000 or less for personal, family or household use, whatever it's called, including from out-of-state lenders when you apply from Maryland.
At the cap, $500 borrowed for 14 days carries at most $6.42 in interest. A typical payday fee of $15 per $100, which the CFPB puts at almost 400% APR, would be $75.
- Nothing to collect. Unless the lender is exempt from licensing, an over-cap or unlicensed loan, or one that breaks the Military Lending Act, is void: no one may collect it, enforce it against your property or sell it.
- Wage apps count. Certain earned wage access products have been covered by the law since October 1, 2025.
Need $500 or $1,000? Options Besides a Payday Loan
OFR suggests shopping for a low-cost credit offer, or a small loan from a credit union or your local bank. Before a bill is late, ask the creditor about a payment plan. If you're in debt, a debt management provider may be able to negotiate for you.
A licensed installment loan is the other route: at Maryland's cap, $500 over 6 months costs at most $49.24 in interest.
Requesting a Loan Within Maryland's Rate Caps
- Decide how much you need and for how long, within the longest terms in the table above.
- Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
- Turn down anything sold as a payday loan or cash advance, and check that the interest rate fits the caps above.
Confirm a Maryland License in NMLS
- OFR uses NMLS Consumer Access as its license lookup. Search by the company's name or NMLS number.
- Check that Maryland shows an active Consumer Lender or Installment Loan Lender license.
- If a company only arranges loans, look for a Credit Services Business license.
Complaints go to OFR's Consumer Response Unit, 410-230-6077. When OFR finds violations, it can order restitution and fines.
- Pay off at any time with no penalty; credit insurance is optional.
- No wage assignment, confession of judgment or blank note as security, and no lien on personal property for a loan under $1,400.
- Federal law caps most loans to active-duty servicemembers and their families at a 36% Military APR.
Common Questions
Are payday loans legal in Maryland?
No licensed lender can make one. The Consumer Loan Law caps interest on loans of $25,000 or less, and over-cap loans are void unless the lender is exempt from licensing.
How can I borrow $500 in Maryland without a payday loan?
Try a small loan from a credit union or your bank, as OFR suggests, or a licensed installment loan: $500 over 6 months is at most $91.54 a month.
How much does a $1,000 loan cost in Maryland?
At the 33% cap, $1,000 over 12 months is $98.97 a month, $187.64 in interest. A lender can charge less.
What if I took an online payday loan in Maryland?
If the lender charged more than Maryland allows or wasn't licensed, and isn't exempt, the loan is void and no one can collect it. Report it to OFR at 410-230-6077.
Are car title loans legal in Maryland?
Maryland has no separate title loan law. A title loan of $25,000 or less gets the same caps, and no lien on personal property is allowed for a loan under $1,400.
Official Sources
General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.
- Md. Code, Com. Law § 12-303 - Loans covered by the Consumer Loan Law
- Md. Code, Com. Law § 12-306 - Consumer loan interest rates and terms
- Md. Code, Com. Law § 12-307 - Permitted charges
- Md. Code, Com. Law § 12-308 - Receipts and prepayment
- Md. Code, Com. Law § 12-311 - Prohibited security
- Md. Code, Com. Law § 12-312 - Insurance
- Md. Code, Com. Law § 12-314 - Void and unenforceable loans
- Md. Code, Com. Law § 12-1003 - Credit grantor interest rate
- Maryland OFR - Payday loans: what you need to know
- Maryland OFR - Consumer lenders
- Maryland OFR - Installment loan lenders
- Maryland OFR - Search for regulated businesses
- Maryland OFR - Consumer complaints and inquiries
- Maryland General Assembly - HB 1294 (2025), Chapter 847
- CFPB - Rights under the Military Lending Act
- CFPB - What is a payday loan?
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