Loan Rates and Fees in Maryland

Maryland does not license payday lenders or authorize short-term, single-payment lending. No licensed lender in the state can offer a payday loan. For installment loan costs, see below.

Licensed lenders charge interest on a declining-balance basis - you pay interest only on what you still owe. Rate caps depend on the original principal balance of the loan:

Any origination or processing fee is treated as interest under Maryland law and must fall within the rate caps above - no separate origination fee is permitted on top of those rates.

On a $1,000 loan repaid over 12 months at the maximum 2.75% monthly rate on a declining balance, you'd repay approximately $190 in interest, for a total of roughly $1,190.

• Refinancing restarts interest on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
• The returned-payment fee - labeled "NSF fee" or "dishonored check fee" on your agreement - is capped at $35 per failed attempt.
• Late fees can't exceed 5% of the unpaid installment amount; the lender must give you a 10-day grace period before charging one, and only one late fee per missed payment is allowed.
• You can prepay in full at any time with no penalty; interest stops accruing on the date you pay - see installment loans in Maryland for repayment details.

If an offer exceeds these limits, verify with the Maryland Office of the Commissioner of Financial Regulation.

• Total of payments: add up every scheduled payment and confirm it matches the "total of payments" line in the federal disclosure box.
• Military borrowers: if you or your spouse are active-duty, the federal Military Lending Act caps most consumer loans at 36% APR - confirm the lender applied it.