Rates and fees

Ultimately, it is up to each particular lender to settle the fees and rates for the loan they are providing. Payday and installment loans are regulated by federal and state laws, which will also affect the cost of the loan. We match our clients with lenders that follow federal and state laws, making sure they benefit from online loans. Nevertheless, borrowers should always check terms and conditions, to see if the rates and fees conform their state laws. Consumers must understand the cost of the loan, including rates and fees! With this in mind, we have gathered a lot of information regarding instant short-term online loans. Now our users have more knowledge and can better understand how online loan works.

Short-Term Loan Fundamentals

Rates and Fees Visitors may find on our website articles, resources, and links, that will help to understand payday and installment loans. We have detailed information on the specific loans, the average rates and fees associated with these loans. This will come handy when deciding to take a loan. We also provide studies on how to choose a trustworthy lender, and not fall for online scams! As our customers are our top priority, we want clients to make an informed loan decision. We give honest information about the loans and promote responsible borrowing, by warning about the dangers of installment and cash advance loans. If you want more information about regulations in the industry and consumer fairness, visit Federal Trade Commission and the Consumer Financial Protection Bureau websites.

Fees and APR

Annual percentage rate, or APR, is the total amount of interest, borrowers pay for a loan in a year’s time. Short term loans have high APR which varies from 200% to 2,290%. The APR will depend on the method it is calculated, whether it was nominal or effective. This rate might seem high, but because these loans are small and are paid back in a short amount of time, the APR won’t affect the loan too much and it can compete even with regular loans. Here is a table of typical fees related to small cash advance loans.

Credit card overdraft fees vs. Payday loans fees
Product Type (single repayment) Charge APR
NSF + Bounced Check $45.00 1,173.21%
Overdraft Fee $30.00 782.14%
Late Fee $20.00 521.43%
Short Term Loan $10.00 260.71%

State Regulations

Our lenders do follow federal laws and state regulations regarding short-term loans. These include information about whether cash advance loans are allowed, how much can be borrowed, how many loans a person can have at the same time and how much fees and interest can be taken. States can also determine how many rollovers can lenders provide to borrowers. Here is a list of states, the maximum loan amount of that state and other regulations they have set for small loans. This is not a complete list of regulations, only general information, which can change when the state regulations are updated.

State Maximum loan amount Finance charges maximum of total loan amount Other regulations on fees
Alabama $500 17.50%
Alaska $500 15.00% $5 origination fee allowed
Arkansas $400 10.00% Additional charges, including origination fees max $10
California $300 15.00%
Colorado $500 20% for the first $300 and 7.5% for amounts from $301 to $500 ARP max 45.00% and $30 per month maintenance fee permitted for lenders.
Delaware $500 10.00% Reasonable verification fee allowed
Hawaii $600 15.00%
Idaho $1,000
Illinois $1,000, or 25% of Gross Monthly Income 15.50%
Indiana 500 (minimum 50) 15.00% for the first 200$; 13.00% for amounts between $251 and $400; 10.00% for amounts from $401 to $500
Iowa $500 15.00% for the first $100; 10.00% for the rest
Kansas $500 15.00% An administrative fee is allowed
Kentucky $500 15.00% Maximum of two loans, that cant exceed the state maximum
Louisiana $350 16.75%
Maine No limits or regulations
Michigan $600 15.00% for the first $100; 14.00% for the next $100; 13.00% for the third $100; 12.00% for the fourth $100; 11.00% for the sixth $100 Administrative fees are allowed
Minnesota $350 5.5% for the first $100; 7% for amounts from $101 to $250; 6% for amounts from $251 to $350 Administrative fees allowed
Mississippi $400 18.00%
Missouri $500 75.00% All finance charges/interest is allowed as long as it does not exceed 75% of the total loan amount
Montana $500 ($50 minimum) 36.00%
Nebraska $500 15.00%
Nevada 25.00% No additional regulations
New Hampshire $500 6.00%
New Mexico 15% of Gross Monthly Income No additional regulations
North Dakota $500 20.00%
Ohio $500 28.00%
Oklahoma $500 15.00% for the first $300; 10.00% for remaining amount
Oregon 25% of Gross Monthly Income 36.00% Origination fees up to $30 allowed
Rhode Island $500 15.00% of the face value shown on the provided check
South Carolina $550 15.00%
South Dakota $500
Tennessee $500 15.00%
Utah No minimum or regulations
Virginia $500 15.00% Verification and origination fees allowed
Washington $700 or 30% of Gross Monthly Income 15.00% Verification fees allowed
Wisconsin No limits or regulations
Wyoming No maximum 20% or $30 of the principal balance, whichever is less
States that do not allow short term loans! Arizona, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia

* This list is not exclusive and can have outdated information as regulations are updated by the states.