A State-by-State Guide to Payday Loan Interest Percentages
Payday loans are among the most convenient small amount loans to meet your emergency expenses. However, the payday loan industry is governed by state regulations that impose limits on both the interest rate and the loan amount that can be borrowed by a consumer. Local lenders apply state regulations to frame their payday loan rates that significantly influence the cost of these loans. Make sure you understand the overall cost of a payday loan online in your state before you borrow.
Payday Loans: State-by-State Guide
Here is a compilation of payday loan interest percentages by the state, as per the Center for Responsible Lending. Interest rates may vary from state to state. These states have limited the payday loan amounts to around $500 to $1000, as per the National Conference of State Legislators.
| State | APR % | Max Loan Amount |
|---|---|---|
| Alabama | 456 | $500 |
| Alaska | 435 | $500 |
| Delaware | 521 | $1000 |
| Hawaii | 460 | $600 |
| Indiana | 382 | $550 |
| Kansas | 391 | $500 |
| Kentucky | 460 | $500 |
| Michigan | 369 | $600 |
| Mississippi | 521 | $500 |
| Missouri | 443 | $500 |
| Nebraska | 460 | $500 |
| New Hampshire | N/A | $500 |
| North Dakota | 487 | $500 |
| Ohio | 677 | $500 |
| Oklahoma | 395 | $500 |
| Rhode Island | 261 | $500 |
| South Carolina | 391 | $550 |
| South Dakota | N/A | $500 |
| Tennessee | 460 | $500 |
| Virginia | 601 | $500 |
Source: Center for Responsible Lending, National Conference of State Legislators
In the following states, upper limits offered for a loan amount are much higher. A few of them require that you borrow the loan amount equivalent to a percentage of your monthly earnings.
| State | APR % | Max Loan Amount |
|---|---|---|
| Idaho | 652 | $1000 |
| Illinois | 404 | $1000 or 25% of gross monthly income, whichever is less |
| Nevada | 652 | 25% of gross monthly income |
| New Mexico | 416 | $2500 |
| Texas | 662 | Not specified |
| Utah | 658 | None |
| Washington | 391 | $700 or 30% or gross monthly income, whichever is less |
| Wisconsin | 574 | None |
| Wyoming | 261 | None |
Source: Center for Responsible Lending, National Conference of State Legislators
Here is the list of states where minimal payday loan amounts are offered:
| State | APR % | Max Loan Amount |
|---|---|---|
| California | 460 | $300 |
| Louisiana | 391 | $350 |
| Minnesota | 200 | $350 |
| Montana | N/A | $300 |
Source: Center for Responsible Lending, National Conference of State Legislators
These two states have legislation, which necessitates that loans be of longer duration and do not cater to faster loans.
| State | APR % | Max Loan Amount |
|---|---|---|
| Colorado | 214% APR per deferred loan | $500 with a minimum loan term of 6 months |
| Oregon | 154 | $50,000 with a minimum loan term of 31 days |
Source: Payday Loan Consumer Information, Center for Responsible Lending, National Conference of State Legislators
Finally, not every state favors the short-term or the payday loan version. These states dictate that only a regulated few manage the short-term loans or prohibit them entirely.
| State | APR % | Max Loan Amount |
|---|---|---|
| Arizona | N/A | Prohibited |
| Arkansas | N/A | Prohibited |
| Connecticut | N/A | Prohibited |
| Georgia | N/A | Prohibited |
| Maine | Only supervised lenders are permitted to cash or advance money on a postdated check | |
| Maryland | N/A | Prohibited |
| Massachusetts | N/A | Prohibited |
| New Jersey | N/A | Prohibited |
| New York | N/A | Prohibited |
| North Carolina | N/A | Prohibited |
| Pennsylvania | N/A | Prohibited |
| Vermont | N/A | Prohibited |
| West Virginia | N/A | Prohibited |
Source: Center for Responsible Lending, National Conference of State Legislators
That covers the payday loan interest percentages in all the 50 U.S. states to give you clarity on where you can find suitable payday loans.
Online payday loans offer solutions for temporary money problems and are not intended for long-term use. Apply for online payday loans with us today, and we will help you cover your financial gap at once!
Comments are closed
