Usury cap
A state’s legal maximum interest rate — the line tribal loans are designed to cross.
What "usury cap" means
A usury cap is the maximum interest rate a lender may legally charge under state law. Most states set a small-loan cap around 36% APR; some, like New York, use a 16% civil and 25% criminal usury line. A loan above the cap can be void or unenforceable.
Tribal lenders' entire model is built on charging past these caps by claiming state law doesn't reach them. Whether that holds depends on your state — see our state legality map to find your cap and what applies.