Need a short-term loan in Louisiana? Learn more about your options right now!
We may all get in financial trouble: a shopping you cannot afford, having to buy a gift unexpectedly, having to pay for a medical cost or getting a broke car repaired and there are still a few weeks to pass until our salary arrives.
And when we are short of helpful friends or relatives we all turn to short-term cash loan options. Well, Payday loan is a type of loan which was founded exactly for this reason. Of course, there are other short term cash based loans available under different names but in general, payday loan is the one loan most people in the US opt for when they badly need cash as soon as possible. This loan’s great advantage is, that it can be available for the lender within an hour. Let’s get to see if you can opt for a payday loan in Louisiana.
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What are the payday loan laws and regulations in Louisiana?
Louisiana is luckily one of the states where payday loan is considered legal and it’s governed by the law LA. Stat. Ann. 9:3578.1 et seq.
How much can you be charged by a payday lender in Louisiana?
The following charges apply to all loans in Louisiana:
- Basic loan fee: 16,75% of the total amount borrowed
- Documentation fee. USD 10 to be paid separately
- Additional finance charge: 30% for every USD 100
- APR: can be as high as 780%
Borrowers are allowed to obtain multiple loans in the same time, given that they have already paid back at least 25% of their previously obtained loan, but there is no way for renewal or a rollover or find any other way to extend the loan
Your rights as a borrower in LA
Lenders are obligated to comply with the following regulations in Louisiana:
- The state forbids to provide a loan higher than USD 350 to one person at a time
- Per contract borrowers obligate themselves to pay back the total amount until the predefined deadline.
- Lenders are not obligated by law to send notices and alerts for their borrowers, however they are still required to do so
- In turn borrowers are required to be totally informed about all the terms and conditions of the loan they are about to get. It is of their best interest to check out multiple lenders and go for the one that has a long history of lending short term cash loans and who have a good reputation and work with low APR. It is also favorable if they don’t apply any further additional charges and seemingly do not take any other steps to abuse the borrowers’ situation.
- Lenders have the right to apply one NSF fee per one loan.
- Lenders can start legal procedures in order for the total sum of the loan to be paid back for them.
As APR is not pre-defined in the state borrowers lenders do have the right to apply any APR they want.
As payday loan is a type of loan where borrowers can quickly fall into a debt trap everyone who is to borrow money this way is alerted to make sure they have the means to pay the total sum back with the interest rate applied in due time.