Payday Loan Summary by State Part 2
Knowing your state’s laws regarding payday loans is a good idea. This is especially true if you are thinking about getting one of these small short term loans. Every state has their own laws so here are some of those laws.
In Georgia payday loans work a little differently. No lender is legally allowed to loan a borrower less than three thousand dollars. Georgia also has a cap on the interest rate that can be charged for any loan. This cap is at sixteen percent.
Hawaii has passed laws to allow payday lending in that state. These loans can last up to thirty two days. The maximum that you can get for a payday loan in Hawaii is six hundred dollars. The interest rate and fees that a lender is allowed to charge a borrower does depend on the amount being borrowed.
Idaho is another state that allows a payday lender to charge whatever fees and interest rates that the borrower agrees to pay. They do not have a maximum amount of time that the loan can be out. The lenders in Idaho also allow for loans to be as big as a thousand dollars.
In Illinois a borrower may only have one payday loan out at a time. The loans in this state typically last between thirteen and forty five days. Most of the lenders in this state will charge fifteen dollars and fifty cents per every one hundred dollars that is lent.
Indiana is another state that allows the payday lenders to charge whatever fees and interest rates that the borrower agrees to pay. For a payday loan in this state you have a minimum of fourteen days before you have to pay your loan back.
In Iowa a lender may not lend any borrower more than five hundred dollars at a time. These loans typically give you thirty one days to pay them back. The fees associated with a loan in this state are fifteen dollars for the first hundred that is borrowed and ten dollars for each hundred after that.
In Kansas the maximum you can borrow from a payday lender is five hundred dollars. No lender can have more than two outstanding loans per borrower at any given time. There is also new legislation in this state that puts limits on a payday lenders ability to collect on a military member’s payday loan.
Kentucky’s laws on payday lending are very simple and straight forward. These loans last between fourteen and sixty days. The maximum a borrower can get is five hundred dollars. The lenders in this state charge fifteen dollars for every one hundred being borrowed.
The payday lending laws in Louisiana states that the lenders must be licensed. Lenders are also not allowed to attach property when they are collecting on payday loans. The maximum for their loans is three hundred and fifty dollars. They are allowed to have loans out for up to sixty days.
It is easy to see that some states have similar laws but that others have ones that are rather different. It is best to know what your state’s laws are regarding payday loans prior to applying for one. There are some laws that will remain the same for years to come and others that could change within a few years.