Rhode Island Payday Loans Law
Rhode Island has always been a state known for supporting the freedom of action and conscience. The rebellious nature of Rhode Island is shown through the years with the burning of Gaspee and Liberty (British revenue cutters), with its early independence declaration and its refusal to actively participate in the 1812 War.
Even though Rhode Island is the smallest state in the United states, it is a big center for jewelry manufacture. Other important industries include plastic products, electronics, boat and ship construction and others. The state of Rhode Island is the eighth least populous state in the country with a population of no more than 1,056,298.
Like many people in the country, residents of Rhode Island experience financial difficulties when they are forced to deal with emergency situations. In such situations, most of them find the solution to their problems in payday loans. The number of payday loan lenders has increased in the last 10 years, and so it is very easy to find a reliable lender on Rhode Island.
What is a payday loan?
Payday loans are one of the most popular type of short-term loans out there. Usually, when taking out a payday loan, the borrower is required to repay the amount in full within his next payday. Payday loans are short-term loans, so the loan term typically does not exceed 14 days. The standard amount of a payday loan usually does not exceed $500. However, every state has its own payday loan laws, so these terms can vary from one state to another.
Rhode Island payday loan laws regulations
According to the R.I. Stat. Ann. 19-14.4-1 et seq, payday loans in the state of Rhode Island are considered legal. Payday loan lending companies need to operate under these law regulations. In Rhode Island, the maximum loan amount a borrower can take out is $500. There is no limit on the maximum loan term, however, the loan length cannot be less than 13 days. Payday loan lending companies in the state of Rhode Island have the right to charge 10% interest rate on each loan, meaning that for each $100 borrowed, you will have to pay $10. The maximum annual percentage rate for a two-week loan cannot exceed 260%.
In Rhode Island, every borrower is allowed to have up to three payday loans per year, each not exceeding the amount of $500. Borrowers are also allowed one rollover for each loan. Each lending company’s fees and charges should be posted in their offices and online stores and should be available for all customers to see. To grant a payday loan, the payday loan lending company must have a signed contract with the borrower. This contract should contain all loan information, including all the fees and annual percentage rate.
Rhode Island payday loans benefits
Payday loans in Rhode Island have a reputation for being dangerous to people who use them. However, as much as they can be considered risky, they have also been quite beneficial for borrowers. There are many advantages that make payday loans so popular, here are a few:
With payday loans being as popular as they are, the number of payday loan lenders has increased dramatically. This means that you can easily find a lender store near your home or workplace. You also have the option of applying and receiving your money without having to leave your chair or bed by submitting your loan application online. Many borrowers find this feature very useful.
Rhode Island payday loans are fast
Usually, people take out payday loans when they have to deal with an unexpected event. And in cases of emergency, you really need to have the cash as soon as possible. By taking out a payday loan, you will have to wait no more than a few hours to get your money (if you decide to apply online, you may have to wait until the next business day for the money to be transferred).
Freedom of spending
While conventional lending institutions require you to specify what you are going to do with the money before they even approve your loan application, with payday loans you are free to do whatever you want. Once the application is done and you have your cash, how you want to spend the loan money is entirely up to you.
Applying for a payday loan with bad credit in Rhode Island is ok
There are many people with bad credit scores and they are constantly getting rejected from traditional lending institutions, such as banks. Payday loan lenders, however, do not care about your credit score. What they need you to have is a steady source of income that will allow you to repay the loan on time.
Payday loan eligibility requirements in Rhode Island
Once you have chosen a lending company to work with, all you need to do is to apply for your loan. Even though payday loans are extremely easy to qualify for, there is still some basic criteria you have to meet to be eligible for your loan.
- You need to be 18 years old or older
- You need to have a stable source of monthly income
- You must be an American citizen or a permanent resident of the state you are applying from
To complete your payday loan application, you will also need to provide the following information:
- Your birth name, phone number and home address
- Your social security number, and a valid form of Identification
- Details regarding your income and employment
Cities in Rhode Island where you can find payday loan lenders:
- Central Falls
- North Kingstown
- East Providence