Loans Near Me

Payday loans are also known as payroll loans, cash advance, or payday advance. It is a small-unsecured amount of money given to borrowers and it is due on their next payday. Payday advance loans rely on the borrower repaying the loan on the next payday and the lenders ask for his employment history and proof of recurrent income before offering the loan. In the United States, there are laws and regulations governing payday lending and payday loan laws vary from one state to another.

Payday Loan Laws in Different States

Payday Loan Laws in Different States

To prevent unreasonable interest rates, some states limit the annual percentage rate that the lenders can charge borrowers. Some states have outlawed payday lending entirely and in other states, they have to operate within the small loan laws with 36-40% annual percentage rate. Payday loans are small amounts of money that is subject to state regulations and many states have adopted usury laws to protect borrowers.

Payday lending is legal in 38 states in USA and in the District of Columbia. Some states have some kind of restricted short-term lending. However, payday lending is prohibited in 12 states. The main reason for prohibiting the practice is due to several reasons. The lender charges significantly high interest rates, there is a high rate of bankruptcy among borrowers and automatic rollovers which increase debt owed by the borrowers. The Consumer Financial Protection Bureau is mandated to control payday lenders regardless of loan size. The bureau has issued enforcement regulations which govern lenders from exploiting borrowers and it prohibits the lenders from issuing loans to active military personnel because of the aggressive collection techniques employed.

Some payday lenders have circumvented the regulations by partnering with tribal members to offer loans online. However, the protection bureaus are looking into different ways that the lenders are using to bypass the law. In the schemes operated by lenders commonly referred to as rent-a-tribe scheme, the lenders operate outside the tribal soil but offer loans to the tribes. Some states have issued regulations on the number of loans a borrower can request. These regulations are applicable to states such as Illinois, Michigan, Florida, North Dakota, Indiana, New Mexico, Oklahoma, Virginia and South Carolina. According to the regulations, all licensed lenders must check the eligibility of the borrower before issuing a loan. In some states, borrowers are limited to a certain number of loans per year and in others, the number of rollovers is restricted. In others, after the borrower has renewed several loans, the lender must give the borrower a lower interest loan to help them overcome debt.

Nevertheless, some borrowers bypass these restrictions by taking loans from other lenders across the states. The states with the most number of payday lenders per capita include Oklahoma, Louisiana, South Carolina, Mississippi and Alabama. States which have prohibited payday lending have lower levels of bankruptcy. It is essential to note that payday loans should only be used to deal with emergency financial situations and not as a long-term solution for financial problems. In the United States Truth in Lending Act requires that the lenders disclose regulation as well as terms and conditions of the loan to the borrower.

Payday lending is legal in Alabama but it is limited to one roll over

Payday lending is legal in Alabama but it is limited to one roll over

Payday Loan Laws in Each State

  1.      Alabama

Payday lending is legal in Alabama but it is limited to one roll over. The maximum amount that the borrower is allowed to borrow is $500 and the loan term is not less than 10 days and not more than 31 days. The charges accrued on the loan should not exceed 17.5% of the total amount.

  1.      Alaska

Payday lending is legal in Alaska but limited to two rollovers. The maximum amount allowed is $500 and the loan term should not exceed 14 days. The licensed lender can charge a non-refundable origination fee not exceeding $5 and this fee should not exceed $15 for every $100 given or 15% of the amount.

  1.      Arizona

Payday lending is prohibited in Arizona.

  1.      Arkansas

Payday lending is prohibited in Arkansas.

  1.      California

Payday lending is legal in California but there is no rollover allowed. The maximum amount to be borrowed is $300 and the loan term is not more than 31 days. In addition, fees charged on the loan should not exceed 15% of the total amount given.

  1.      Colorado

Payday lending is legal in Colorado and is limited to one roll over. Payday loans in Colorado may attract 45% annual interest charge, 7.5% maintenance fees and tiered finance charges. The borrower is charged 20% for the first $300 and 7.5% for any amount from $301 to $500. The borrower can repay the loan in installments, in a lump sum or any time with rebate of the unearned fees. The minimum loan term is six months and there is no maximum loan term.

  1.      Connecticut

Payday lending is prohibited.

  1.      Delaware

licensed lender may charge interest

licensed lender may charge interest

Payday lending is legal in Delaware and it is limited to four rollovers. The maximum loan amount is $1000 and the maximum loan term is not more than 60 days. The licensed lender may charge interest on a monthly, weekly or a daily or annually based on the agreement of the loan. The loan is calculated depending on the needs of the borrower and servicing of the loan will depend on the borrower’s repaying capabilities.

  1.      District of Columbia

Payday lending is not legal in the District of Columbia .

  1.      Florida

Payday lending is legal in the state of Florida but there are no rollovers allowed. The maximum amount allowed is $500 and the loan term is not less than 7 days and not more than 31 days.

  1.      Georgia

Georgian legislations describe payday lending as a felony.

  1.     Hawaii

Payday lending is legal in the state of Hawaii, there is no rollover allowed and it is applied via check cashers only. The maximum amount allowed is $600 and the loan term should be not more than 32 days. The check casher may charge a fee or defer a deposit to an amount not exceeding 15% of the total amount borrowed.

  1.    Idaho

Payday lending is legal in Idaho but is limited to three rollovers. The maximum loan amount is $1000.

  1.    Illinois

Payday lending is legal in the state of Illinois but no rollover is allowed. The maximum amount of the loan allowed is $1000 or not more than 25% of the borrower’s gross monthly income. No payday loan offered should exceed 120 days and not less than 13 days. Installment loan is an exception with the borrower allowed to repay the loan as agreed with the lender.

  1.    Indiana

Payday lending is legal in Indiana but no rollover is allowed

Payday lending is legal in Indiana but no rollover is allowed

Payday lending is legal in Indiana but no rollover is allowed. The minimum loan amount is $50 and the maximum is $550. The loan term in the state should not be less than 15 days and charges on the first $250 are limited to 15% of the principal amount. A 13% interest is charged on loans over $250 to $400, while those between $400 to $ 500 are charged at 10%.

  1.    Iowa

Payday lending is legal in Iowa but no rollover is allowed. The licensed lender should not hold maker check or checks that accrue to $500 at any time. Payday loans in this state should not exceed 31 days. The lender should not charge a fee more than $15 for the first $100 or 15% for the loan. In addition, subsequent loans shall should not attract not more than 10% for every $100 increment of the amount given.

  1.    Kansas

Payday lending is legal in Kansas and the number of roll over is not specified. Borrowers can get cash advance equal to or less than $500. The maximum loan term is 30 days and minimum term is 7 days. A licensed lender is allowed to charge not more than 15% of the amount given in cash advance. No other charges are allowed on the loans except returned check fees and charges included in checking the loan or cashing the loan.

  1.    Kentucky

Payday lending is legal in Kentucky but it only applies to check cashers and no roll over is allowed. A licensed lender is not allowed to have more than two deferred deposit transactions from borrowers. The total proceeds received from borrowers from deferred deposit transactions should not exceed $500 and the loan term should not exceed 60 days.

  1.    Louisiana

Payday loans in Louisiana is legal, however no roll over is allowed. The maximum borrowable amount is $4350 and the loan term should not exceed 30 days.

  1.    Maine

Payday lending is allowed in the state of Maine for licensed lenders, however no roll over is allowed. Maine has a cap of 30% on loans. The tiered fees could rise to 261% annually for a $250 loan for two weeks. There is no maximum loan amount.

  1.    Maryland

Payday lending is not allowed in Maryland.

  1.    Massachusetts

Payday lending is illegal in Massachusetts.

Payday lending is illegal in Massachusetts.

Payday lending is illegal in Massachusetts.

  1.    Michigan

Payday lending is legal in the state of Michigan but no rollover is allowed. The maximum loan term is 31 days and maximum loan amount is $600.

  1.    Minnesota

Payday lending is legal in the state of Minnesota, however no rollover is allowed. The maximum loan term is 30 days and maximum loan amount is $350.

  1.    Mississippi

Payday lending is legal in the state of Mississippi, but no rollover is allowed. The maximum loan term is 30 days and a maximum of $500 is allowed for borrowers.

  1.    Missouri

Payday lending is legal in Missouri. The loans can have a maximum of six rollovers and the borrower must reduce the principal amount by at least 5% before each renewal is allowed. The maximum amount of loan allowed is $500 and a maximum of 31 days for the loan. The minimum period for the loan is 14 days. The borrower will be charged interest for the unpaid principal balance at an interest agreed by both parties and no borrower is allowed to pay a loan amount accumulating to over 75% of the principal amount.

  1.    Montana

Payday lending is legal in the state of Montana, but no rollover is allowed. The minimum amount a borrower can borrow is $50. The amount borrowed coupled with fees, and other interest charges shall not exceed $300. The licensed lender is not allowed to charge a fee exceeding 36% per annum of the amount borrowed.

  1.    Nebraska

Payday lending is legal in the state of Nebraska

Payday lending is legal in the state of Nebraska

Payday lending is legal in the state of Nebraska, however no rollover is allowed. No licensed lender is allowed to hold maker check or checks cumulative to $500. The loan has a maximum term of 34 days and the lender is not allowed to charge not more than 15% per every $100 given.

  1.    Nevada

Payday lending is legal in the state of Nevada and there is no specific number of rollovers given. Lenders cannot extend the payment period for more than 60 days from the first day of loan approval. In addition, the lender shall not charge more than 25% of the deferred loan deposit from the borrower.

  1.    New Hampshire

Payday lending is legal in New Hampshire and there is no rollover allowed. New Hampshire caps interest rates at 36% annual interest. The maximum amount allowed is $500 and the loan should be at least 7 days and not more than 30 days.

  1.    New Jersey

The state of New Jersey prohibits payday lending and the loans are limited to 30% annual interest.

  1.    New Mexico

Payday lending is legal in New Mexico, however no rollover is allowed. Borrowers who are unable to pay their debt are given a 130-day payment plan with no interest. Once the loan is fully repaid, the borrower cannot access another loan until 10 days later. A loan can run between 14 to 35 days and fees are capped at $15.5 for each $100 borrowed.

  1.    New York

New York prohibits payday lending and the loans are capped at 25% annual interest.

  1.    North Carolina

Payday lending is prohibited in the state of North Carolina.

  1.    North Dakota

Payday lending is legal in North Dakota, however only one rollover is allowed. The maximum loan amount is $500.

  1.    Ohio

Payday lending is legal in Ohio & no rollover is allowed

Payday lending is legal in Ohio & no rollover is allowed

Payday lending is legal in Ohio and no rollover is allowed. The maximum amount a person can borrow is $500 and the loan term should not be less than 31 days. The interest rate capped should not exceed 28%.

  1.    Oklahoma

Payday lending is legal in Oklahoma and no rollover is allowed. The loan amount given should not exceed $500 exclusive of charges and interest rates. The loan term should not be more than 45 days and not less than 12 days.

  1.    Oregon

Payday lending is legal in the state of Oregon and only two rollovers are allowed. Oregon permits a 31-day loan term at 36% interest. In addition, a $10 is charged per $100 borrowed on the initial fees.

  1.    Pennsylvania

Payday lending is illegal in Pennsylvania.

  1.    Rhode Island

Payday lending is legal in Rhode Island and one rollover is allowed. The maximum loan amount given is $500 and loan term should not be less than 13 days.

  1.    South Carolina

Payday lending is legal in South Carolina but no rollover is allowed. The maximum amount of loan allowed is $500 and the loan should not exceed 31 days. A licensed lender should not charge more than 15% of the total amount given.

  1.    South Dakota

Payday lending is legal in South Dakota and four rollovers are allowed. Loans are capped at 36% for car and installment loans. The maximum loan amount allowed is $500.

  1.    Tennessee

Payday lending is legal in Tennessee, however no rollover is allowed

Payday lending is legal in Tennessee, however no rollover is allowed

Payday lending is legal in Tennessee, however no rollover is allowed. The maximum loan amount allowed is $500. The loan term should not exceed 31 days and after 31 days, it is tendered to the licensed lender.

  1.    Texas

Payday lending is legal in the state of Texas, however no rollover is allowed.

  1.    Utah

Payday lending is legal in Utah and it applies to check cashers only. There is no specific number of rollovers. However, the borrower is not allowed renew the loan for more than 10 weeks from the first date accepted. There is no limit to loan amount.

  1.    Vermont

Payday lending is not allowed in Vermont.

  1.    Virginia

Payday lending is legal in the state of Virginia, however no rollover is allowed. Virginia loans are paid in two cycles and the maximum loan amount is $500.

  1.  Washington

Payday lending is legal and no rollover is allowed. The lender is required to have an endorsement of their check from a licensee to get payday loans. The amount accepted should not exceed $700 and the loans are capped at 30% of the gross monthly income.

  1.  West Virginia

Payday lending is not authorized in West Virginia.

  1.  Wisconsin

Payday lending is legal in Wisconsin and with a maximum of one roll over. There is no maximum loan amount to be given. The interest rate charged varies from one licensed lender to another.

  1.  Wyoming

Payday lending is legal in Wyoming, however rollovers are not allowed. There is no maximum to loan amount. The maximum term of the loan is 31 days.