A life policy loan in South Carolina cannot charge a fixed rate of interest higher than?

In South Carolina, the maximum fixed rate of interest that can be charged on a life policy loan is established by state law at 8%. This regulation is designed to protect policyholders from excessively high interest rates that could otherwise make it difficult for them to repay the loan and maintain the value of their life insurance policy. By capping the interest rate, the law ensures that borrowers are treated fairly and that they have a better chance of remaining financially responsible. Understanding this rate is particularly important for policyholders considering borrowing against their life insurance, as it directly affects their financial obligations related to the loan.