Find a payday loan in Illinois and learn more about the laws and regulations in this state.
Payday loans seem to be a good solution if you have short-term issues that need to be paid with a high urgency. However, it can also get you in trouble due to the high-interest rates, and other conditions lenders may apply. That is why the state of Illinois started to put protective laws and actions to protect state citizens from any of such debts. The state also highly advises all its citizens to consider all other options before obtaining a payday loan to avoid the risk of long-term debt.
To find a payday loan go to your city or click on the link below to apply online.
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What are the payday loan laws and regulations in Illinois?
While payday loans are considered legal in the state of Illinois, from 2011, the state put specific laws in place to protect consumers. Currently, the key law is the law Idaho Statute 28-46-401 et seq. which states that everyone who is considered an adult and holds a job can only get a payday loan which they can afford to pay back. That is also why rollovers are not allowed for cash-based loans either. The law concentrates on short-term cash based loans which include pawns, payday loans and other loans of this nature.
Let’s see what current regulations are in place for payday loans in the state of Illinois:
- The maximum amount of payday loan: USD 1,000 or 25% of the borrower’s monthly income (with taxes), whichever amount is less out of the two
- Maximum borrowing term of payday loan: 120 days
- Minimum borrowing term: 13 days
Installment loans: an alternative to payday loans which come with better conditions in Illinois, therefore, can be considered another option if you need a short-term cash loan. Here are some of the key requirements that apply to Installment loans in the state.
All required details of the borrower and his/her workplace will be collected. This includes personal data and employment data too. Access to either a checking account or a debit account will have to be discussed between the lender and the borrower.
How much can you be charged by a payday lender in Illinois?
Illinois lenders may also offer small consumer loans with a 99% cap on APR.
- Finance charge is: USD 15.50 per USD 100 and an additional USD 1 as verification fee
- APR: The APR can be as high as 403%
The conditions of installment loan are virtually identical.
Your rights as a lender in IL
Lenders must hold a state license that allows them to lend money officially on contracted terms. Lenders are also required to keep a separate license per state and location. Borrowers can request a repayment plan in case they are unable to pay over a 35 day period counting from the day they took the loan. It is important to note that once a debtor is enrolled in a repayment plan, they will not and cannot be charged any additional interests or fees. Repayment plans are not available for those obtaining an installment loan.