Are state interest-rate caps an automatic win for borrowers? Annie Millerbernd NerdWallet FacebookTwitterEmail There is no federal maximum interest rate on consumer loans, so absent a state law, lenders can charge high rates on small loans. But recently, more states have moved to bring that number down.Mark Humphrey | AP Small-dollar, short-term lenders, unburdened by a federal maximum interest rate, can charge borrowers rates of 400% or more for their loans. But more states are bringing that number down by setting rate caps to curb high-interest lending. Currently, 18 states and Washington, D.C., have laws that limit short-term loan rates to 36% or lower, according to the Center for Responsible Lending. Other states are weighing similar legislation.