Illinois Payday Loans

Illinois payday loans are a popular way to get cash quickly as long as you have a steady source of income and can repay with your next paycheck. It is important to understand the concept properly and the consequences of defaulting in such a loan. Thus, we have gathered all the information you’ll need to know about Illinois payday loans before you apply for one.

Are payday loans legal in Illinois?

Yes, Illinois payday loans are legal and governed by a set of laws that dictate interest rates, repay times and all fees and penalties related to the practice. This includes both payday loans and installment loans. However, installment loans differ from payday loans in that installment loans are repaid over a longer period of time at lower interest rates. Unlimited rollovers are prohibited and the amount of a loan depends on how much a person can afford. We advise that you should exhaust all your other options before taking out a loan.

Payday loan regulations:

Maximum loan amount: $1000 or 25% of your gross monthly income, whichever is less.
Maximum term: 45 days.
Minimum term: 13 days.
Finance charge: $15.50 per $100 and a $1 verification fee
APR: The max APR for a 14-day $100 loan is 403%

Installment loan regulations:

Maximum loan amount:$1000 or 22.5% of your gross monthly income, whichever is less.
Maximum term: 180 days.
Minimum term: 112 days.
Finance charge: $15.50 per $100 and a $1 verification fee
APR: The max APR for a 14-day $100 loan is 403%

For a cooling off period, Illinois law requires a cooling off period of 7 days after 45 consecutive loan days.

What you should consider before applying?

Payday loans and installment loans can be a good way of making it through a rough financial time. As long as you budget for the high cost caused by the interest, you should be able to handle a loan. Fortunately, Illinois laws ban rollovers/refinancing, so you won’t have to worry about being charged extra interest should you default on your loan.

What do you need to apply?

You can apply online. You’ll need to provide some basic information about yourself and your finances. Lenders require that you be at least 18 years old, be a US citizen or permanent resident and have a regular source of income.

In addition, you’ll have to provide personal details, including your Social Security number and a valid form of ID. Online lenders often require that you provide access to your bank account where your loan will be deposited and your payment debited.