Payday Loan Laws by State, Simplified

1
Payday Loan Laws by State, Simplified
The law can be a tad bit confusing for many and
even basic information can be a little difficult
to decode. Read on for a better understanding
of the same Always Know The Law Of The Land
Before Making Any Financial Decision! It is not
unknown that the United States of America follows
the concept of decentralization, which means
that all the power is not held by the central
government solely. The federal government too,
has its hands full when it comes to making the
right decisions for its respective state and
fortunately or unfortunately, payday loans come
under the law by the state. With regard to the
interest rates allowed, rollovers and extensions,
lets find out the terms of online payday loans
from direct lenders and whether a payday loan is
legal or not is a choice made by every state
government in the U.S.A and we bring to you
information regarding the same, to help you know
more about short term loans in your place of
residence.
Alabama With the law not being completely
against payday loans, they do allow the practice
but have certain rules for the same. Maximum
Loan Amount 500 Minimum Term of Repayment 10
Days Maximum Term of Repayment 31
Days Alaska Even though a little more strict
than Alabama, Alaska allows the concept of payday
loans to run in the state so that individuals
who require a small sum of money or have bad
credit find it fairly easy to avail finances.
2
Maximum Loan Amount 500 Maximum Term of
Repayment 14 Days Arizona Arizona is one
amongst the states that does not allow the
practice of payday loans. Arkansas Just like
Arizona, Arkansas also doesnt allow payday loans
to be practiced in the state. California Even
though California does allow the business of
payday loans to exist in the state, an individual
cannot borrow more than 300. That however
doesnt mean that its of less importance. You
can do a lot with 300 and can cater to
financial requirements for groceries, to fix
vehicles that have broken down, leaking pipes,
or other such unanticipated situations that you
may not have enough savings for. The repayment
term however, is a fairly long one that gives
borrowers a good number of days to pay back
their loan. Maximum Loan Amount 300 Maximum
Term of Repayment 31 Days Colorado With a
slightly different approach towards payday loans,
Colorado allows the practice but with the
minimum repayment term being way more than most
other states. Maximum Loan Amount 500 Minimum
Term of Repayment 6 Months Delaware Delaware
permits the business of payday loans and allows
the transactions of such loans with a fair sum
of money. This of course gives borrowers a wider
range of situations to cater to such as funding
medical emergencies, paying off other debts (debt
consolidation), etc. Maximum Loan Amount
500 Term of Repayment Less than 60
days. District of Colombia The transaction of
payday loans is prohibited in the
state. Florida While making terms clear for both
payday and installment loans, Florida definitely
allows the concept to exist in the
state. Maximum Loan Amount 500 for loans that
have to be repaid in lump-sum and 1000 for loans
that are taken on the basis of an
installment. Terms of Repayment 7-31 days for
those loans that are not taken on the agreement
of being paid back in installments and 60-90 for
those that are.
3
Georgia The practice of payday loans is
prohibited in the state. Guam A state specific
law for payday loans isnt available. Hawaii Whil
e allowing the concept to exist, Hawaii permits a
decent amount of money that borrowers can avail
from payday loan lenders. Maximum Loan Amount
600 Maximum Repayment Term 32 days
Idaho Idaho is another state that permits payday
loan businesses to run, while allowing lenders to
offer up to 1000 to help borrowers deal with
financial emergencies without having to wait for
a long time to receive money when they need it
urgently. Maximum Loan Amount 1000 Loan
Repayment Term Not mentioned. Illinois Illinois
has different rules for different situations. For
more information it is advised that you look up
the laws regarding payday loans in your state and
apply accordingly. Indiana While taking into
consideration the fact that every dire situation
needs a decent amount of funding, Indiana states
that a payday loan cannot be provided if one asks
for less than 50. Loan Amount 50-550 Loan
Repayment Term At least 14 days Iowa While
allowing payday loans to exist in the lending
market, the rules laid down by this state
includes the following Maximum Loan Amount
500 Loan Repayment Term Shouldnt exceed more
than 31 days. Kansas A minimum of 7 days are
required before one can repay his/her
loan. Maximum Loan Amount 500 Loan Repayment
Term 7-30 days Kentucky
4
Kentucky allows a maximum of two loans to be
borrowed from a particular lender at a single
time. Maximum Loan Amount 500 Loan Repayment
Term Shouldnt exceed 60 days. Louisiana While
making it clear that no short term loans
interest can exceed 45, Louisianas payday loan
rules include the following Maximum Loan Amount
350 Maximum Repayment Term 30 days
Maine According to the laws stated by NCSL,
With respect to a consumer loan, other than a
loan pursuant to open-end credit, a lender may
contract for and receive a finance charge
calculated according to the actuarial method,
not exceeding the equivalent of the following A.
The total of
(i)
30 per year on that part of the unpaid balances
of the amount financed that is 2,000 or
less 24 per year on that part of the unpaid
balances of the amount financed that is more
than 2,000 but does not exceed 4,000 and 18
per year on that part of the unpaid balances of
the amount financed that is more than 4,000.
(ii)
(iii)
Maximum Loan Amount Not given Repayment Term
Not given Michigan While allowing payday loans
to be practiced in the state, Michigan has the
following terms Maximum Loan Amount
600 Repayment Term 31 days Minnesota Like
California, Minnesota allows the exchange of
payday loans in comparatively smaller amounts
that one can use in order to fulfill their basic
monetary needs. Maximum Loan Amount 350
Repayment Term No more than 30 days
Mississippi Mississippi has some interesting
terms listed down when it comes to the exchange
of payday loans. While taking the loan amount
into consideration, they also have a policy
wherein the total money borrowed/lent includes
the interest. Maximum Loan Amount 500
(including interest) Repayment Term Not given
5
Missouri Payday loans definitely see a stability
in the market with Missouri allowing the practice
of it. Maximum Loan Amount 500 Repayment Term
14-31 days Montana Montana also has a minimum
amount of a deferred deposit loan which is
50. Maximum Loan Amount 300 Repayment Term
Not given Nebraska The use of payday loans is
allowed in Nebraska and their terms include the
following Maximum Loan Amount 500 Repayment
Term 34 days Nevada The terms of Nevada are a
little different. Their laws demand that no
borrower can borrow a loan that exceeds 25 of
their monthly income. Repayment Term No more
than 35 days New Hampshire While being in favor
of the practice of payday loans, the rules and
regulations of the state regarding these short
term loans include Maximum Loan Amount
500 Repayment Term 7-30 days New Mexico New
Mexico is against the business of payday
loans. North Carolina Just like New Mexico, even
North Carolina is against the practice. North
Dakota One cannot borrow another payday loan if
he/she already has an outstanding balance of 600
to be repaid to other lenders. Maximum Loan
Amount 500 Repayment Term 60 days N. Marina
Islands Information regarding the same isnt
available. Ohio
6
While allowing a fair amount to be borrowed
through payday loans, Ohios rules
include Maximum Loan Amount 1000 Repayment
Term Different for different circumstances. Oklah
oma Exclusive of the finances charges, Oklahoma
allows the following amount of money in payday
loan transactions Maximum Loan Amount 500
Repayment Term 12-45 days Oregon According to
NCSL, Oregons payday lenders are allowed to
offer a huge sum of money to lenders needing or
wanting them. Maximum Loan Amount 50,000
Repayment Term 31-60 days Puerto Rico No
information regarding payday loans is available
for Puerto Rico. Rhode Island While allowing
payday loans to exist in the lending market, the
terms of this state are Maximum Loan Amount
500 Repayment Term A minimum of 13 days, no
maximum period is mentioned. South Carolina The
states rules for payday loans are as
follows Maximum Loan Amount 550 Repayment
Term Not to exceed 31 days South Dakota South
Dakota requires one to follow these rules with
regard to the transactions of payday
loans. Maximum Loan Amount 500 Repayment Term
Not mentioned. Tennessee There are rules
regarding the aggregate face value from all
outstanding checks from one particular customer,
which are as follows Maximum Loan Amount
Shouldnt exceed 500 Repayment Term 31
days Texas
7
Texas has a number of rules and regulations
concerning payday loans, which are applicable to
different situations. Utah Utah has stated rules
regarding rollovers, which mentions that a
rollover cannot be extended for more than 10
weeks from the day the loan transaction was
initially executed. Virginia Their loan
regulations include Maximum Loan Amount
500 Repayment Term A term of at least two times
the borrowers pay cycle. Virgin
Islands Information regarding payday loans for
the state isnt available. Washington The laws
regarding payday loans in Washington
include Maximum Loan Amount 700 or 30 of the
gross monthly income of the borrower- whichever
of the two is lower. Repayment Term The lender
must set the date of repayment on or after the
borrowers pay day unless it is less than 7 days
away in which case the next pay day or after that
will be taken into consideration as the date of
repayment of the payday loan. Wisconsin Terms
regarding repayment and amounts are
unavailable. Wyoming The information regarding
payday loans for Wyoming are as follows Maximum
Loan Amount Not given. Repayment Term One
calendar month. With the article now coming to an
end, you should know that the reason why such
loans, even though with a slightly higher
interest rate than a traditional one, exist
because same day payday loans are given with no
credit check which is a huge advantage to
borrowers who need quick cash, or have bad
credit ratings. Disclaimer The information cited
in the article has been gathered from the website
of NCSL and has been written according to our
best knowledge and understanding of the same.
However, the information provided in this
article is basic and since laws do change every
now and then, one must look up more information
depending on their situation and need for a
payday loan in their state.