Laws that determine the maximum interest rate a lender can charge are called:

Usury laws are designed to protect consumers by establishing limits on the interest rates that lenders can charge for loans. These laws are put in place to prevent lenders from exploiting borrowers with excessively high-interest rates that could lead to unmanageable debt. Each state may have its own specific usury limit, which is a legal threshold for how much interest can be charged on a loan.

Understanding usury laws is crucial for anyone involved in the lending process, as it ensures compliance with legal standards and fosters fair lending practices. In contrast, while banking regulations, interest rate laws, and loan regulations encompass various aspects of financial practices and protections, they do not specifically define the maximum interest rates lenders can impose; this is the unique focus of usury laws.