What is the term for laws that regulate the maximum amount of interest an entity can charge on loans?

The term that describes laws regulating the maximum interest rate that can be charged on loans is known as usury law. These laws are implemented to protect consumers from excessive interest rates that could lead to financial exploitation. Each state has its own specific usury laws that dictate the allowable interest rates for different types of loans, such as personal loans, mortgages, or credit cards.

The primary aim of usury laws is to ensure fair lending practices and to prevent predatory lending situations where lenders could impose unreasonably high interest rates, which could make it exceedingly difficult for borrowers to repay their loans. By establishing these caps, usury laws contribute to maintaining a more equitable lending environment and protecting borrowers' rights.

The other options, while they may sound relevant, do not specifically denote the regulatory frameworks that limit interest rates. Interest rate law, loan regulation law, and borrowing law broadly refer to legislation governing various aspects of lending and borrowing without specifically addressing the maximum interest rates that can be charged, making usury law the precise term needed in this context.