Maryland’s general interest law permits up to 24% simple interest per year on a written loan secured by personal property, subject to statutory conditions. A vehicle can be personal-property collateral, but a lender must identify the legal authority for the offer and comply with applicable repossession and redemption requirements. Get the APR, finance charge, payment schedule, lien terms, and default provisions in writing before using a car as security.
Last reviewed: August 13, 2026. This page provides general consumer information, not legal advice.
Are title loans legal in Maryland?
Maryland regulates vehicle-secured borrowing through its credit and interest laws rather than a simple, separate title-loan rate chart. Commercial Law §12-103 generally permits up to 24% effective simple interest on the unpaid principal balance of a written loan secured by personal property, if the statutory conditions are met. Among those conditions, the lender must comply with §12-115 on repossession and redemption of goods securing the loan.
Some Maryland credit-grantor frameworks have different rules. Do not assume a product label alone determines the lawful rate or fee. Verify the contracting lender and read the complete written agreement. Maryland’s Office of Financial Regulation accepts complaints that specifically include auto or car title loans and auto repossession.
Sources: Maryland Commercial Law §12-103, Office of Financial Regulation complaint guidance, and Maryland financial-regulation complaint form.
Maryland vehicle-secured loan limits
| Rule | Maryland requirement or consumer check |
|---|---|
| General written-loan rate | Maryland generally allows up to 8% simple interest per year under a signed written agreement, subject to statutory exceptions. Commercial Law §12-103. |
| Personal-property-secured loan | A written loan secured by personal property may carry effective simple interest up to 24% per year on the unpaid principal balance when the conditions in §12-103 are met. |
| Vehicle as collateral | A vehicle is personal property. The lien, lender authority, rate calculation, and default provisions must be clear in the written agreement. |
| Maximum amount | The cited general-interest provision does not set a universal vehicle-title-loan amount. Underwriting, vehicle value, existing liens, and the agreement affect any offer. |
| Balloon payments | For the 24% personal-property-secured-loan provision, a balloon payment is not allowed unless payment in full is due on demand or in one year or less. Commercial Law §12-103. |
| Refinancing | A refinancing is subject to limits on interest, fees, and other charges under the applicable Maryland subtitle. Review the new APR and total of payments, not just the new monthly amount. |
| Repossession and redemption | The 24% personal-property-secured-loan provision requires compliance with Commercial Law §12-115 concerning repossession and redemption of the goods securing the loan. |
| Usury remedy | A violation of Maryland’s usury provisions can require forfeiture to the borrower of the greater of three times excess interest and charges collected or $500. Commercial Law §12-114. |
| Complaint | Maryland OFR investigates complaints about financial-service providers it regulates and its form includes auto or car title loans and auto repossession. |
What to review before applying
Request enough information to identify the applicable Maryland credit framework. Get the lender’s legal name, license or registration information, APR, finance charge, amount financed, total of payments, payment schedule, itemized fees, lien documents, default terms, and repossession language. The lender may request ID, income details, registration, title, insurance, and information about existing liens; those requests are not approval promises.
Do not sign a blank title transfer, power of attorney, or agreement with missing rate, fee, or payment fields. Check whether the loan relies on the 24% personal-property-secured provision or another credit authority, then compare the full cost before accepting.
Repossession and help in Maryland
Respond promptly to any default or repossession notice. Request a current payoff, payment history, and copy of the signed security agreement. Keep every notice and envelope, receipts, and a record of personal property in the vehicle. The general-interest provision itself requires compliance with Maryland’s repossession and redemption rules when the loan is secured by personal property.
OFR says it investigates complaints involving providers it regulates, but it cannot give legal advice for a court matter. For an urgent vehicle dispute, contact legal assistance promptly and preserve the paperwork.
Alternatives and help in Maryland
For household expenses, benefit and nonprofit resources may avoid placing transportation at risk. These are resources, not loan offers.
- Food benefits: apply through Maryland Benefits for SNAP and other programs.
- Utility support: the Office of Home Energy Programs provides energy-assistance information and applications.
- Credit-union alternative: the NCUA’s Payday Alternative Loan materials describe an option some federal credit unions may offer. Confirm availability directly.
- Complaint: use the Maryland OFR complaint process and attach the contract, payment record, and notices.
- Legal assistance: OFR’s legal-help and financial-counseling directory lists Maryland Legal Aid and other resources.
Cities we serve in Maryland
Maryland location pages remain subject to the execution plan’s lender-relationship and quality review. This statewide hub is the source for Maryland’s personal-property-secured loan rule and borrower checks until individual local destinations are validated.
Frequently asked questions
What rate can a Maryland vehicle-secured loan charge?
A written personal-property-secured loan may carry effective simple interest up to 24% per year on the unpaid principal balance if it meets the conditions in Commercial Law §12-103.
Does Maryland have one standard title-loan amount?
No universal vehicle-title-loan amount appears in the cited general-interest provision. The lender’s underwriting, vehicle value, existing liens, and agreement determine any offer.
What happens before repossession on a 24% personal-property-secured loan?
Commercial Law §12-103 requires the lender to comply with §12-115 concerning repossession and redemption. Review the agreement and notices promptly and seek legal help where needed.
Can Maryland investigate an auto-title-loan complaint?
Maryland OFR’s complaint form specifically includes auto or car title loans and auto repossession. OFR investigates providers within its jurisdiction.
What should I keep after receiving a default notice?
Keep the contract, lien documents, notices and envelopes, payment history, payoff statement, and all communications. Ask for a written accounting promptly.
