Criminal Interest Rate

Quick Definition

The legal maximum lenders may charge under Canada's Criminal Code.

Full Explanation

Canada's Criminal Code sets a maximum annual percentage rate that lenders may legally charge. As of January 1, 2025, the federal cap is 35% APR for most consumer loans, down from roughly 47%. Some regulated products such as payday loans follow separate provincial rules.

Related Terms

APR (Annual Percentage Rate)

The true yearly cost of borrowing, including fees and interest.

Payday Loan

A small, very short-term loan with extremely high borrowing costs.

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