Interest Rate Ceiling
/ˈɪntrəst reɪt ˈsilɪŋ/
Definitions
- (n.) A legally mandated maximum rate of interest that can be charged on a loan or credit, designed to protect borrowers from usurious rates.
The state's interest rate ceiling prevents lenders from charging more than 18% annually on consumer loans.
Forms
- interest rate ceilings
Related terms
See also
Commentary
Interest rate ceilings are often set by statute or regulation and can vary by loan type or jurisdiction to manage credit affordability and prevent predatory lending.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.