What is the highest interest rate loan ever?
From 1971 to present, the highest average mortgage rate ever recorded was 18.63% in October 1981. Mortgage rates held steady above 18% in the two-month span between Sept. 10 and Nov. 12, 1981.
Credit score | This week's average APR | Maximum APR |
---|---|---|
Excellent (720+) | 16.76% | 35.99% |
Good (660-719) | 90.13% | 440.97% |
Fair (620-659) | 127.91% | 214.30% |
Poor (<620) | 142.98% | 214.30% |
The benchmark interest rate in the United States was last recorded at 5 percent. Interest Rate in the United States averaged 5.42 percent from 1971 until 2024, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.
The maximum interest rate allowed by law for those within the MLA is capped at a 36% annual percentage rate. The types of financial products covered under the MLA include payday loans, credit cards, overdraft lines of credit and some installment loans.
Avoid loans with APRs higher than 10% (if possible)
“That is, effectively, borrowing money at a lower rate than you're able to make on that money.”
What's the Highest Mortgage Rate in History? From 1971 to present, the highest average mortgage rate ever recorded was 18.63% in October 1981. Mortgage rates held steady above 18% in the two-month span between Sept. 10 and Nov.
A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit) 580 to 669: Around 18% (look for loans for fair credit)
Lawrence Yun, chief economist at the National Association of Realtors, even told CNBC last year that he doesn't think mortgage rates will reach the 3% range again in his lifetime.
The Fed funds rate, which is the rate banks charge each other for overnight loans, hit 20 percent in 1980, and 21 percent in June 1981. The cause was an inflationary spiral brought on by rising oil prices, government overspending and rising wages.
This Week | Month Ago | |
---|---|---|
Fed Funds Rate (Current target rate 4.75-5.00) | 5 | 5.5 |
What is the maximum interest rate for a personal loan?
Personal Loan Interest Rate. The personal loan interest rates range between 9.99% p.a. and 44% p.a. Depending on the loan amount availed by you, your credit score, and repayment tenure, the rate of interest on your loan is decided.
Chapter 302 discusses interest rates in general and restates the maximum interest rates found in the Texas Constitution. Chapter 303 discusses optional rate ceilings. Section 303.009 caps interest at 18% per year.

The current highest credit card interest rate is 36% on the First PREMIER® Bank Mastercard Credit Card. The next highest credit card interest rate seems to be 35.99%, charged by the Total Visa® Card and the Milestone® Mastercard®.
Bank | Minimum interest rate on personal loan (%) |
---|---|
ICICI Bank | 10.65 |
HDFC Bank | 10.5 |
State Bank of India | 12.30 |
Bank of Baroda | 13.15 |
On the other hand, credit cards, private student loans and payday loans carry some of the highest interest rates of all debt types.
Borrower credit rating | Score range | Estimated APR |
---|---|---|
Excellent | 720-850. | 11.35%. |
Good | 690-719. | 14.34%. |
Fair | 630-689. | 17.64%. |
Bad | 300-629. | 22.29%. |
The fed funds rate began the decade at a target level of 14 percent in January 1980. By the time officials concluded a conference call on Dec. 5, 1980, they hiked the target range by 2 percentage points to 19-20 percent, its highest ever. Consumer borrowing costs soared as a result.
There's no federal regulation on the maximum interest rate that your issuer can charge you, though each state has its own approach to limiting interest rates.
Under the criminal usury statute, the maximum interest that can be charged is 25%.
At a 7% interest rate, a 30-year fixed $200K mortgage has a monthly payment amount of $1,331, while a 15-year fixed $200K mortgage at the same interest rate has a monthly payment amount of $1,798.
What is a good loan rate?
For example, if you have excellent credit, a rate below 11 percent would be considered good, while 12.5 percent would be less competitive. To improve your odds of getting a good rate, pay your credit accounts on time, keep credit card usage to a minimum and avoid opening too many new accounts.
Even people with good credit scores make mistakes, and a bank may charge a penalty APR on your credit card without placing a negative mark on your credit report. Penalty APRs typically increase credit card interest rates significantly due to a late, returned or missed payment.
The Mortgage Bankers Association (MBA) September forecast also predicts the 30-year rate will be at 6.2% in Q4 2024, but it's a little more conservative with 2025 expectations — the MBA foresees a 5.8% rate at the end of 2025.
Mortgage rates should continue declining this year as the U.S. economy weakens, inflation cools and the Federal Reserve continues to cut interest rates. The 30-year fixed mortgage rate is expected to fall to the low-6% range through the end of 2024, dipping into high-5% territory in 2025.
However, increases should slow between 2024 and 2026, and rates may even decline in 2027. Among the factors that could impact mortgage rates in the next 5 years are inflation, Federal Reserve policy, and economic growth. Homebuyers should consider locking in a low mortgage rate now, as rates are expected to rise soon.”