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
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.
|Product Type (single repayment)||Charge||APR|
|NSF + Bounced Check||$45.00||1,173.21%|
|Short Term Loan||$10.00||260.71%|
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|
|Alaska||$500||15.00%||$5 origination fee allowed|
|Arkansas||$400||10.00%||Additional charges, including origination fees max $10|
|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|
|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|
|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|
|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%||–|
|Nevada||–||25.00%||No additional regulations|
|New Mexico||15% of Gross Monthly Income||No additional regulations||–|
|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||–|
|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.