# Set and manage rate caps

Rate caps set a ceiling on the interest rate that can accrue on a loan. Use **Set rate cap** to add a new cap, and **Manage rate caps** to update or remove an existing one. If multiple rate caps overlap on the same dates, the system uses the lowest value. Setting a rate cap with a past start date triggers an account replay.

**Availability:** All clients
**Required permissions:** `rates:create` (to set); `rates:update` (to update); `rates:delete` (to remove)
**Loan status:** `active`
**Loan types:** All

## Set a rate cap

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Set rate cap**.
2. For Line of Credit loans, select the scope from the **Applicable to** dropdown: Line of credit and draws, Line of credit only, or a specific draw. This field does not appear for installment loans. See [Global behaviors — Applicable-to selector](/servicing-operations/agent-only-tools/agent-tools-overview#applicable-to-selector).
3. Enter the **Max rate (annual)** as a percentage (0–999.99).
4. Select a **Start date**. The date can be in the past, today, or in the future. The maximum is the loan end date.
5. Optionally select an **End date**, or choose **End of loan** to apply the cap indefinitely. The end date must be after the start date.
6. Select a **Reason** for the rate cap.
7. Select **Set rate cap**.


The rate cap takes effect at the start date. If the start date is in the past, the system replays the loan.

### Set rate cap field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Applicable to** | Whether the cap applies to the line of credit, all draws, or a specific draw. Only shown for LOC loans. | Conditional | Select: Line of credit and draws, Line of credit only, or a specific draw |
| **Max rate (annual)** | The maximum annual interest rate as a percentage. | Yes | Number (0–999.99) |
| **Start date** | The date the rate cap takes effect. | Yes | Date (max: loan end date) |
| **End date** | The date the rate cap expires. Select **End of loan** for no end date. | No | Date or "End of loan" preset. Must be after start date. |
| **Reason** | The regulatory or business reason for the rate cap. | Yes | Select: MLA, SCRA, Federal, State, Other |


## Manage rate caps

View, update, or remove existing rate caps on the loan.

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Manage rate caps**.
2. For Line of Credit loans, select the scope from the **Applicable to** dropdown to filter the rate cap list.
3. Select the rate cap you want to modify from the list.


### Update a rate cap

1. Select the rate cap, then select **Update**.
2. In the update dialog, modify the fields as needed: **Max rate (annual)**, **Start date**, **End date**, and **Reason**.
3. Select **Update rate cap**.


The system replays the loan after the update.

### Remove a rate cap

1. Select the rate cap, then select **Remove**.
2. Confirm the removal.


The system replays the loan after the removal.

### Manage rate caps field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Applicable to** | Filters the rate cap list. Only shown for LOC loans. | Conditional | Select: Line of credit and draws, Line of credit only, or a specific draw |
| **Rate cap selection** | The rate cap to update or remove. | Yes | Radio group from rate cap list |
| **Max rate (annual)** | The updated maximum annual rate (update dialog). | Yes | Number (0–999.99) |
| **Start date** | The updated start date (update dialog). | Yes | Date |
| **End date** | The updated end date (update dialog). | No | Date or "End of loan" preset. Must be after start date. |
| **Reason** | The updated reason (update dialog). | Yes | Select: MLA, SCRA, Federal, State, Other |


**Note:** The **Update** button requires the `rates:update` permission. The **Remove** button requires the `rates:delete` permission. If you lack either permission, the corresponding button is hidden.

## Related pages

- [Agent-only loan tools](/servicing-operations/agent-only-tools/agent-tools-overview)
- [Set and remove interest rates](/servicing-operations/agent-only-tools/agent-tools-interest-rates)
- [Set SCRA terms](/servicing-operations/agent-only-tools/agent-tools-scra)
- [Set and remove promo rates](/servicing-operations/agent-only-tools/agent-tools-promo-rates)