Local Regulations & Terms by State
Payday Loans Regulations
Payday loans are typically small, short-term loans intended to cover a borrower's expenses until their next payday. They are known for having high interest rates and fees.
- Legal and Regulated: States like Missouri, Texas, Ohio, and California allow payday loans but have regulations in place governing loan terms, maximum loan amounts, and caps on interest rates and fees.
- Restrictions: Some states permit payday loans but with restrictions. For example, Washington and Montana have capped interest rates at a lower rate than the national average.
- Prohibited: Payday loans are prohibited in some states like Arizona, Arkansas, Georgia, New York, and New Jersey. In these states, lenders are barred from offering payday loans to residents.
Installment Loans Regulations
Installment loans are loans that are repaid over time with a set number of scheduled payments. Unlike payday loans, installment loans are typically for larger amounts and have longer terms.
- Widely Available: Installment loans are legal in most states, with specific terms and interest rates regulated by state laws. States that allow payday loans usually also permit installment loans.
- Regulated Terms: Even in states where they are allowed, the terms of installment loans, including interest rates and fees, are regulated. For example, California has specific laws governing the terms of installment loans, including interest rate caps and licensing requirements for lenders.
States with Specific Regulations
- Colorado: Has unique laws for payday loans, enforcing longer repayment terms with capped interest rates.
- South Dakota and Utah: Have fewer regulations on payday loans, allowing lenders more flexibility in terms of loan terms and interest rates.
- Virginia: Recently passed laws to regulate payday and installment loans more strictly, focusing on capping interest rates and offering borrowers longer repayment terms.
Payday Loan Rates by State
Even in states where payday or installment loans are heavily regulated or prohibited, residents might access these loans through online lenders. However, borrowers should exercise caution and ensure these online platforms comply with state laws and regulations.
| State | Max Loan Amount | Max Loan Term | Max APR | Max Finance Charge |
|---|---|---|---|---|
| Alabama | $500 | 31 Days | 456% | 17.5% |
| Alaska | $500 | 14 Days | 520% | $5+15% |
| Arizona | N/A | N/A | N/A | N/A |
| Arkansas | N/A | N/A | N/A | N/A |
| California | $300 | 31 Days | 459% | 15% |
| Colorado | N/A | N/A | N/A | N/A |
| Connecticut | N/A | N/A | N/A | N/A |
| Delaware | $1000 | 60 Days | 521% | N/A |
| District of Columbia | N/A | N/A | N/A | N/A |
| Florida | $500 | 7-31 Days | 419% | $5+10% |
| Georgia | N/A | N/A | N/A | N/A |
| Hawaii | $500 | 32 Days | 459% | 15% |
| Idaho | $1000 | N/A | N/A | N/A |
| Illinois | $1000 | 45 Days | 403% | $1+15.5% |
| Indiana | $605 | 14 Days | 390% | 15% |
| Iowa | $500 | 31 Days | 433% | 15% |
| Kansas | $500 | 30 Days | 390% | 15% |
| Kentucky | $500 | 60 Days | 459% | $1+15% |
| Louisiana | $360 | 60 Days | 780% | $10+16.75% |
| Maine | $2000 | N/A | 30%+ | N/A |
| Maryland | N/A | N/A | N/A | N/A |
| Massachusetts | N/A | N/A | N/A | N/A |
| Michigan | $600 | 31 Days | 390% | 15% |
| Minnesota | $350 | 30 Days | 390% | 15% |
| Mississippi | $500 | 30 Days | 520% | 20% |
| Missouri | $500 | 31 Days | 1950% | 75% |
| Montana | $300 | 31 Days | 36% | 1.39% |
| Nebraska | $500 | 34 Days | 459% | 17.65% |
| Nevada | $500 | 35 Days | 456% | 17.5% |
| New Hampshire | N/A | N/A | N/A | N/A |
| New Jersey | N/A | N/A | N/A | N/A |
| New Mexico | N/A | N/A | N/A | N/A |
| New York | N/A | N/A | N/A | N/A |
| North Carolina | N/A | N/A | N/A | N/A |
| North Dakota | $500 | 60 Days | 520% | 20% |
| Ohio | $100 | 1 Year | 28% | N/A |
| Oklahoma | $500 | 45 Days | 390% | 15% |
| Oregon | $50000 | 60 Days | 36% | 154% |
| Pennsylvania | N/A | N/A | N/A | N/A |
| Rhode Island | $500 | 13 Days | 260% | 10% |
| South Carolina | $550 | 31 Days | 390% | 15% |