Are state interest-rate caps an automatic win for borrowers? Annie Millerbernd View Comments 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. “This legislative session we’ve seen an increased and renewed interest in limiting interest rates and limiting the harms of payday loans,” says Lisa Stifler, director of state policy for the CRL.