What’s the Loan Amount You Can Get in Illinois?
According to 815 ILCS 122/1-1 et seq., borrowers may not be eligible for a payday loan if the total of all payday loan repayments due in the first calendar month exceeds $1000, or 25% of the borrower's gross monthly income if multiple loans are taken out.
This also applies when the total payment amount, including any other outstanding debts coming due, exceeds $1000, or 25% of the borrower's gross monthly income. It is also not allowed to take out more than two loans at the same time.
Loan Term in Illinois
In Illinois, a payday loan can be taken for a period of 13 to 120 days. Rollovers are not permitted, particularly if borrowers are intended to extend the payback time of another payday loan.
An installment payday loan should be available for at least 112 days and no more than 180 days.
After 45 days of having a loan, you must wait for a cooling-off period of 7 days (except for installment payday loans) until you get your next loan.
Illinois Payday Loan Rates, Fees, & Other Charges
In Illinois, a 36% rate cap on payday loan interest rates and fees is imposed based on 815 ILCS 122/1-1 et seq. and lenders are not allowed to make a contract for a charge more than that. A finance charge of $1 will be required for verification under §2-15.
How Much Does a $200 Payday Loan Cost in Illinois?
With a 14 days term:
Loan cost: $200*36%*(14/365) = $2.76
To return: Principal + Loan cost = $200+$2.76 = $202.76
- A lender may charge a fee of up to $25 if a check is to be paid in the case of NSF.
- Payday lenders are not allowed to take an interest in the borrower's personal assets for securing purposes.
- In the state of Illinois, criminal charges against borrowers are not allowed.
The payday lending sector in Illinois is regulated by the Illinois Department of Financial and Professional Regulations (IDFPR).