Under Hawaii Usury Law, what is the maximum interest rate for personal loans or junior mortgages?

Under Hawaii Usury Law, what is the maximum interest rate for personal loans or junior mortgages?

• A. 10%
• B. 12%
• C. 15%
• D. No limit

Answer: (B)

Under Hawaii Usury Law, the maximum interest rate for personal loans or junior mortgages is set at 12%. This regulation is designed to protect borrowers by capping the amount of interest that can be charged, ensuring that lending practices remain fair and equitable. By defining this maximum rate, the law aims to prevent predatory lending practices that can arise when interest rates are not regulated. Borrowers can thus have a clearer understanding of the cost of borrowing and can avoid excessively high-interest obligations. This legal framework helps maintain the integrity of the lending industry within Hawaii, as lenders must operate within these boundaries to comply with state regulations.

Under Hawaii Usury Law, the maximum interest rate for personal loans or junior mortgages is set at 12%. This regulation is designed to protect borrowers by capping the amount of interest that can be charged, ensuring that lending practices remain fair and equitable.

By defining this maximum rate, the law aims to prevent predatory lending practices that can arise when interest rates are not regulated. Borrowers can thus have a clearer understanding of the cost of borrowing and can avoid excessively high-interest obligations. This legal framework helps maintain the integrity of the lending industry within Hawaii, as lenders must operate within these boundaries to comply with state regulations.