Maximum Payday Loan Term in Hawaii
- The minimum loan term for payday loans in Hawaii is not limited, and one is given a maximum repayment term of 32 days.
- No rollovers are given; the loan amount should be paid back in due time.
Payday Loan Amount You Can Borrow in Hawaii
- A person can borrow up to $600 taken from a single lender in Hawaii.
- Borrowers are not allowed to have an outstanding loan.
Interest Rates, Fees & Other Charges in Hawaii
Traditionally, payday loan lenders in Hawaii charged APR of up to 460% and it was regulated that finance charges should be 15% of the amount advanced and cannot exceed $17.65 per $100.
However, as per the latest restrictions on payday loan rates, interest rates on payday loans will be capped at 36% within the state. Payday lenders are now permitted to collect a monthly fee of up to $35 based on the amount of the loan.
According to the Bill that took effect on January 1, 2022, “the average Hawaii payday borrower incurs $529 in fees to borrow $300 over five months”.
How Much Does a $100 Payday Loan Cost in Hawaii?
With a 14 days term:
Loan cost: $100*460%*(14/365) = $17.5
To return: Principal + Loan cost = $100+$17.5 = $117.5
- In the event that a borrower is unable to repay on time, a lender is banned from taking any criminal action against them. Exclusions apply when a person intentionally shuts the account before the loan is repaid or instructs the bank to cease the repayment.
- A single NSF collection fee of no more than $20 is allowed under state law.
The Department of Commerce and Consumer Affairs is in charge of all concerns relating to payday lending in the state of Hawaii. There should be a place where all inquiries and complaints may be handled.