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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 u201cdecodeu201d. Read on for a better understanding of the same

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Payday Loan Laws by State, Simplified

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  1. PaydayLoanLawsbyState,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 ofthe same Always Know The Law Of The Land Before Making Any FinancialDecision! 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 thestate. With regard to the interest rates allowed, rollovers and extensions, let’s find out the terms of online payday loans from direct lendersand 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 ofresidence. Alabama: With the law not being completely against payday loans, they do allow the practice but have certain rules for thesame. Maximum Loan Amount: $500 Minimum Term of Repayment: 10 Days Maximum Term of Repayment: 31Days 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 availfinances.

  2. Maximum Loan Amount: $500 Maximum Term of Repayment: 14Days Arizona: Arizona is one amongst the states that does not allow the practice of paydayloans. Arkansas: Just like Arizona, Arkansas also doesn’t 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 doesn’t mean that it’s 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 theirloan. 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 otherstates. Maximum Loan Amount: $500 Minimum Term of Repayment: 6Months 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 60days. District ofColombia: The transaction of payday loans is prohibited in thestate. Florida: While making terms clear for both payday and installment loans, Florida definitely allows the concept to exist in thestate. 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 aninstallment. 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 thatare.

  3. Georgia: The practice of payday loans is prohibited in thestate. Guam: A state specific law for payday loans isn’tavailable. Hawaii: While allowing the concept to exist, Hawaii permits a decent amount of money that borrowers can avail from payday loanlenders. Maximum Loan Amount: $600 Maximum Repayment Term: 32days 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 iturgently. Maximum Loan Amount: $1000 Loan Repayment Term: Notmentioned. 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 applyaccordingly. 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 14days Iowa: While allowing payday loans to exist in the lending market, the rules laid down by this state includes thefollowing: Maximum Loan Amount: $500 Loan Repayment Term: Shouldn’t exceed more than 31days. Kansas: A minimum of 7 days are required before one can repay his/herloan. Maximum Loan Amount: $500 Loan Repayment Term: 7-30days Kentucky:

  4. Kentucky allows a maximum of two loans to be borrowed from a particular lender at a singletime. Maximum Loan Amount: $500 Loan Repayment Term: Shouldn’t exceed 60days. Louisiana: While making it clear that no short term loan’s interest can exceed $45, Louisiana’s payday loan rules include thefollowing: Maximum Loan Amount: $350 Maximum Repayment Term: 30days 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 thatis $2,000 orless; 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 thatis more than $4,000”. (ii) (iii) Maximum Loan Amount: Notgiven Repayment Term: Notgiven Michigan: While allowing payday loans to be practiced in the state, Michigan has the followingterms: Maximum Loan Amount:$600 Repayment Term: 31days Minnesota: Like California, Minnesota allows the exchange of payday loans in comparatively smaller amounts that one can use in order to fulfill their basic monetaryneeds. 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 theinterest. Maximum Loan Amount: $500 (includinginterest) Repayment Term: Notgiven

  5. Missouri: Payday loans definitely see a stability in the market with Missouri allowing the practice ofit. Maximum Loan Amount:$500 Repayment Term: 14-31days Montana: Montana also has a minimum amount of a deferred deposit loan which is$50. Maximum Loan Amount: $300 Repayment Term: Notgiven Nebraska: The use of payday loans is allowed in Nebraska and their terms include thefollowing: Maximum Loan Amount:$500 Repayment Term: 34days Nevada: The terms of Nevada are a little different. Their laws demand that no borrower can borrow a loan that exceeds 25% of their monthlyincome. Repayment Term: No more than 35days NewHampshire: While being in favor of the practice of payday loans, the rules and regulations of the state regarding these short term loansinclude: Maximum Loan Amount:$500 Repayment Term: 7-30days NewMexico: New Mexico is against the business of paydayloans. NorthCarolina: Just like New Mexico, even North Carolina is against thepractice. NorthDakota: One cannot borrow another payday loan if he/she already has an outstanding balance of $600 to be repaid to otherlenders. Maximum Loan Amount:$500 Repayment Term: 60days N. MarinaIslands: Information regarding the same isn’tavailable. Ohio:

  6. While allowing a fair amount to be borrowed through payday loans, Ohio’s rulesinclude: Maximum Loan Amount:$1000 Repayment Term: Different for differentcircumstances. Oklahoma: 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, Oregon’s payday lenders are allowed to offer a huge sum of money to lenders needing or wantingthem. Maximum Loan Amount:$50,000 Repayment Term: 31-60 days PuertoRico: No information regarding payday loans is available for PuertoRico. RhodeIsland: While allowing payday loans to exist in the lending market, the terms of this stateare: Maximum Loan Amount:$500 Repayment Term: A minimum of 13 days, no maximum period ismentioned. SouthCarolina: The state’s rules for payday loans are asfollows: Maximum Loan Amount:$550 Repayment Term: Not to exceed 31days SouthDakota: South Dakota requires one to follow these rules with regard to the transactions of paydayloans. 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 asfollows: Maximum Loan Amount: Shouldn’t exceed$500 Repayment Term: 31days Texas:

  7. Texas has a number of rules and regulations concerning payday loans, which are applicable to differentsituations. 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 initiallyexecuted. Virginia: Their loan regulationsinclude: Maximum Loan Amount:$500 Repayment Term: A term of at least two times the borrower’s paycycle. VirginIslands: Information regarding payday loans for the state isn’tavailable. Washington: The laws regarding payday loans in Washingtoninclude: Maximum Loan Amount: $700 or 30% of the gross monthly income of the borrower- whichever of the two islower. Repayment Term: The lender must set the date of repayment on or after the borrower’s 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 areunavailable. Wyoming: The information regarding payday loans for Wyoming are asfollows: Maximum Loan Amount: Notgiven. Repayment Term: One calendarmonth. 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 checkwhich is a huge advantage to borrowers who need quick cash, or have bad creditratings. 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 theirstate.

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