Under Illinois law, there are very few limitations on interest charges that apply to banks. Section 5e of the Banking Act states that “[n]otwithstanding the provisions of any other law in connection with extensions of credit” banks may charge any “interest, fees, and other charges . . . subject only to the provisions of [subsection 4(1)] of the Interest Act” and subject to any laws applicable to “credit secured by residential real estate.” (Emphasis in bold added.) The only provisos are that the customer must agree to the charges and the bank must set its fees using its “prudent business judgment and safe and sound operating standards.” 205 ILCS 5/5e. While the Banking Act does refer to the Interest Act (subsection (4)(1)), that law also allows banks to charge any interest rate that a customer agrees to pay — it authorizes banks “to receive or contract to receive and collect interest and charges at any rate or rates agreed upon by the bank or branch and the borrower.” 815 ILCS 205/4(1). 

Your loan officer may be thinking of the APR restrictions in the Illinois Consumer Installment Loan Act, which sets an interest rate limit of 36% on most consumer loans. (See 205 ILCS 670/15(a).) However, that law does not apply to banks, and therefore you may rely on the Banking Act and Interest Act language referred to above. 205 ILCS 670/21.