Setting maximum interest rate which licensed regulated consumer lenders may charge on installment loans

SB 729 sets maximum annual interest rates for regulated consumer lenders on installment loans up to $35,000, with rates of 31% for unsecured loans of $3,500 or less, 27% for loans between $3,500 and $15,000 or secured by real property, and 18% for loans over $15,000. It also limits origination fees to 2% for most loans and 5% for real estate-secured loans, requiring these fees to be included in the total borrowing cost. The bill directly affects lenders who make such loans and borrowers who take them by capping the cost of credit. This replaces previous interest rate structures with a tiered system based on loan amount and security.