What is the maximum interest rate that may be charged on most loans unless otherwise agreed?

The correct answer is that the maximum interest rate that may be charged on most loans, unless otherwise agreed, is 6% per year. This is significant because it reflects legal caps established to protect consumers from excessively high-interest rates. Many states, including South Carolina, adhere to established usury laws that limit the amount of interest that can be charged on loans, ensuring that borrowers are not subjected to predatory lending practices.

The rationale behind these limits is to promote fair lending practices and ensure that borrowers can manage their repayment without being overwhelmed by interest. It's important to note that while this is a standard limit, different types of loans or specific agreements might allow for different rates, but the baseline for many loans is typically set at this 6% threshold unless otherwise stated in the contract. Understanding these limits is crucial for both borrowers and mortgage loan originators to promote responsible lending and borrowing.