A payday loan is a short-term financial loan typically used to cover unexpected expenses or to bridge a temporary gap between paychecks. The purpose of a payday loan is to provide fast access to cash in emergency situations.
State-Specific Caps
Alabama
In Alabama, the maximum loan amount for a payday loan is $500, the maximum loan term is 31 days, and the maximum fees are 17.5% of the loan amount.
Alaska
In Alaska, the maximum loan amount for a payday loan is $500, the maximum loan term is 14 days, and the maximum fees are 15% of the loan amount.
Arizona
In Arizona, the maximum loan amount for a payday loan is $500, the maximum loan term is 31 days, and the maximum fees are 15% of the loan amount.
Arkansas
In Arkansas, the maximum loan amount for a payday loan is $400, the maximum loan term is 31 days, and the maximum fees are 17% of the loan amount.
California
In California, the maximum loan amount for a payday loan is $300, the maximum loan term is 31 days, and the maximum fees are 15% of the loan amount.
Colorado
In Colorado, the maximum loan amount for a payday loan is $500, the maximum loan term is 40 days, and the maximum fees are 20% of the loan amount.
Connecticut
In Connecticut, the maximum loan amount for a payday loan is $500, the maximum loan term is 35 days, and the maximum fees are 28% of the loan amount.
Delaware
In Delaware, the maximum loan amount for a payday loan is $500, the maximum loan term is 60 days, and the maximum fees are 5% of the first $500 and 5% of any amount over $500.
District of Columbia
In the District of Columbia, the maximum loan amount for a payday loan is $1,000, the maximum loan term is 45 days, and the maximum fees are 24% of the loan amount.
Florida
In Florida, the maximum loan amount for a payday loan is $500, the maximum loan term is 31 days, and the maximum fees are 10% of the loan amount.
Georgia
In Georgia, the maximum loan amount for a payday loan is $500, the maximum loan term is 31 days, and the maximum fees are 15% of the loan amount.
Hawaii
In Hawaii, the maximum loan amount for a payday loan is $600, the maximum loan term is 32 days, and the maximum fees are 15% of the loan amount.
Idaho
In Idaho, the maximum loan amount for a payday loan is $1,000, the maximum loan term is 31 days, and the maximum fees are 25% of the loan amount.
Illinois
In Illinois, the maximum loan amount for a payday loan is $1,000, the maximum loan term is 45 days, and the maximum fees are 15% of the loan amount.
Indiana
In Indiana, the maximum loan amount for a payday loan is $605, the maximum loan term is 14 days, and the maximum fees are 15% of the loan amount.
Iowa
In Iowa, the maximum loan amount for a payday loan is $500, the maximum loan term is 31 days, and the maximum fees are 15% of the loan amount.
Kansas
In Kansas, the maximum loan amount for a payday loan is $500, the maximum loan term is 30 days, and the maximum fees are 15% of the loan amount.
Kentucky
In Kentucky, the maximum loan amount for a payday loan is $500, the maximum loan term is 31 days, and the maximum fees are 15% of the loan amount.
Conclusion
Payday loans are a useful way to cover unexpected expenses or bridge a temporary cash gap, but it is important to understand the state-specific caps on payday loan fees. Depending on the state, the maximum loan amount, maximum loan term, and maximum fees can vary significantly. It is important to understand the specific regulations in your state before taking out a payday loan.
Implication
The state-specific caps on payday loan fees mean that borrowers need to be aware of the regulations in their state before taking out a payday loan. This is important as taking out a loan with excessive fees can create a debt trap. It is therefore important to understand the maximum loan amount, maximum loan term, and maximum fees before taking out a payday loan.
References:
1. “What Is a Payday Loan?,” The Balance, accessed August 17, 2020, https://www.thebalance.com/what-is-a-payday-loan-315633.
2. “State-by-State Payday Loan Regulations,” Debt.org, accessed August 17, 2020, https://www.debt.org/payday/state-by-state/.
Knowledge Base
Which state has it right when it comes to regulating payday loans?
Since 2010, four states-Colorado, Hawaii, Ohio, and Virginia-have passed comprehensive payday loan reforms, saving consumers millions of dollars in fees while maintaining broad access to safer small credit.
What is the statute of limitations on payday loans in florida?
five years
What is the maximum loan amount you can borrow?
The largest amount a lender will allow you to borrow is around $100,000, which online lenders like LightStream and traditional bank Wells Fargo offer as their maximum personal loan amount.
What is the maximum payday loan amount in california?
$300
Comments are closed.