What is the maximum interest rate cap in Minnesota?

In Minnesota, the maximum interest rate cap for loans is set at 8% per annum. This regulation is important as it serves to protect borrowers from excessively high-interest rates that can lead to financial strain. The cap is particularly relevant in the context of consumer loans and has been established to promote fair lending practices.

This interest rate limitation reflects Minnesota's commitment to maintaining a degree of consumer protection in the financial marketplace. By capping interest rates, the state aims to strike a balance between allowing lenders to earn a reasonable return on their investments while also safeguarding borrowers from predatory lending practices.

Understanding the maximum interest rate cap is crucial for anyone involved in real estate transactions in Minnesota, as it can affect mortgage loans, seller financing arrangements, and other financial dealings in real estate.