Personal Loans in Idaho: No Rate Cap, an Unconscionability Test

Why Idaho has no numeric cap

Section 28-42-201 says that on a loan or credit sale the rate of finance charge "shall be that which is agreed upon between the parties." It does not limit how the charge is calculated, whether by add-on, discount or a single annual rate. On a precomputed loan, what you get back if you prepay is governed by the rebate rules in Section 28-42-307.

The National Consumer Law Center, which compares state caps, lists Idaho among the states with no numeric cap on a $2,000 two-year loan or a $10,000 five-year loan, only an unconscionability standard. Among states that do cap, the median is 34% APR on the $2,000 loan and 27% on the $10,000 loan.

How Idaho compares with its neighbors

The $2,000 figures are current as of September 2025 and the $10,000 figures as of August 2023. Utah, also a neighbor, has no numeric cap either. The state rules map shows every state.

Who needs a license

Section 28-46-301 requires a license before anyone makes regulated consumer loans, or takes assignment of them and collects payments directly from borrowers. The Department of Finance's Consumer Finance Bureau issues it as the regulated lenders license.

• Supervised financial organizations, such as banks and credit unions, are exempt, as are lenders exempt under federal law and certain out-of-state deposit-taking lenders supervised by their own state.
• Online lenders that partner with a bank may make loans through that bank. Ask who the lender of record is and which regulator supervises it.
• Payday and short-term title lenders need a separate regulated payday lender license. Our sister site Lendmira covers those loans on its Idaho page.

How to protect yourself without a cap

Without a ceiling, the gap between two offers can be wide. As an example, not an offer: a $2,000 loan repaid over 24 months at 30% APR costs $111.83 a month and $2,683.92 in all. The same loan at 60% APR costs $144.94 a month and $3,478.56 in all, or $794.64 more for the same cash. The steps below keep you on the cheaper side of that gap.

• Compare the APR and finance charge on each Truth in Lending disclosure, for the same amount and term.
• Ask for every fee in writing, since Idaho allows other charges unless the Credit Code limits them. The net proceeds calculator shows what a fee taken from the loan leaves you.
• Get a quote from a credit union or your bank as well, so you have a second price to measure a finance company's offer against.
• Keep the agreement. If a term looks unconscionable, the papers are what a court or the Department of Finance will look at.

Check a lender and file a complaint

1. 1 Look up the license in the Department of Finance's licensee and financial institution search before you apply.
2. 2 Read the complaint guidance on the department's complaint page and gather your loan papers. How to verify a lender lists the warning signs.
3. 3 Call or write: the main line is 208-332-8000 and the consumer credit line 208-332-8002; the address is 11341 West Chinden Blvd., Building 4, Floor 3, Boise, ID 83714.
4. 4 Send a complaint to the CFPB as well if the lender is a bank or a bank partner.

Questions people ask