Pay Day Loans and How to Get them

A payday loan is considered a short-term loan with high interest rates that must be repaid on the next payday. If payday loans are legal in your state, there will be any number of storefronts where you can get an in-person loan.

Even if they aren’t legal in your state, you may still be able to get a loan by searching online because some lenders try to skirt state laws. Borrowing is easy, and all that is needed is a checking account, ID, and proof of income. However, repayment can be difficult, as there are debt traps to watch out for.

States where Pay Day Loans are Accessible

The following are the states where pay day loans are legalized.

Alabama

• Legal: Yes
• Rate cap: 456.25%
• Maximum loan amount: $500
• Term: 10-31 days

Alaska

• Legal: Yes
• Rate cap: 520%
• Maximum loan amount: $500
• Term: Minimum 14 days

California

• Legal: Yes, but heavily regulated
• Rate cap: 36%
• Maximum loan amount: $300
• Term: Max. 31 days

Delaware

• Legal: Yes
• Rate cap: No limit
• Maximum loan amount: $500 per loan, $1,000 max per borrower at one time
• Term: Maximum 60 days

Florida

• Legal: Yes
• Rate cap: 391% on a 14-day loan of $100
• Maximum loan amount: $500
• Term: 7-31 days

Hawaii

• Legal: Yes, but heavily regulated
• Rate cap: 459%
• Maximum loan amount: $600
• Term: N/A

Idaho

• Legal: Yes
• Rate cap: No limit
• Maximum loan amount: $1,000
• Term: N/A

Illinois

• Legal: Yes, but heavily regulated
• Rate cap: 36%
• Maximum loan amount: Lesser of $1,000 or 25% gross monthly income
• Term: 13 to 45 days

Indiana

• Legal: Yes, but heavily regulated
• Rate cap: 391%
• Maximum loan amount: $550 or 20% of gross monthly income
• Term: Minimum 14 days

Iowa

• Legal:  Yes, but heavily regulated
• Rate cap: 433%
• Maximum loan amount: $500
• Term: Maximum 31 days

Kansas

• Legal: Yes, but heavily regulated
• Rate cap: 390%
• Maximum loan amount: $500
• Term: 7 to 30 days

Kentucky

• Legal: Yes, but heavily regulated
• Rate cap: 782% (on a 7-day loan)
• Maximum loan amount: $500
• Term: 7 to 30 days

Louisiana

• Legal: Yes, but heavily regulated
• Rate cap: 697.41% on a 14-day loan of $100
• Maximum loan amount: $350
• Term: Maximum 30 days

Maine

• Legal: Yes, but heavily regulated
• Rate cap: 217%
• Maximum loan amount: $2,000
• Term: N/A

Michigan

• Legal: Yes, but heavily regulated
• Rate cap: 407% APR on a 14-day $100 loan
• Maximum loan amount: $600
• Term: Maximum 31 days

**Note: On June 1, the campaign Michiganders for Fair Lending submitted signatures for a ballot initiative to regulate payday lending, but the petition apparently fell short of the required number of signatures.

Minnesota

• Legal: Yes, but heavily regulated
• Rate cap: 390%
• Maximum loan amount: $350
• Term: Maximum 30 days

Mississippi

• Legal: Yes, but heavily regulated
• Rate cap: 241% and 521%, based on the loan term
• Maximum loan amount: $500
• Term: Maximum of 30 days

Missouri

• Legal: Yes
• Rate cap: 1955% on a 14-day loan
• Maximum loan amount: $500
• Term: Maximum 31 days

Montana

• Legal: Yes, but heavily regulated
• Rate cap: 36%
• Maximum loan amount: $300
• Term: Maximum 31 days

Nevada

• Legal: Yes
• Rate cap: N/A
• Maximum loan amount: 25% of expected gross monthly income
• Term: Maximum 35 days

North Dakota

• Legal:  Yes
• Rate cap: 520%
• Maximum loan amount: $500
• Term: Maximum 60 days

Ohio 

• Legal: Yes, but heavily regulated
• Rate cap: 28%
• Maximum loan amount: $1,000
• Term: Maximum 12 months

Oklahoma

• Legal: Yes, but heavily regulated
• Rate cap: 204%
• Maximum loan amount: $1,500
• Term: Maximum 12 months

Oregon

• Legal: Yes
• Rate cap: 36% per year
• Maximum loan amount: $50,000
• Term: Maximum 60 days

Rhode Island

• Legal: Yes
• Rate cap: 260%
• Maximum loan amount: $500
• Term: Minimum 13 days

South Carolina

• Legal: Yes
• Rate cap: 391% on a 14-day loan
• Maximum loan amount: $550
• Term: Maximum 31 days

Tennessee

• Legal: Yes
• Rate cap:  460% on a 14-day loan
• Maximum loan amount: $500
• Term: Maximum 31 days

Texas

• Legal: Yes, weakly regulated
• Rate cap: N/A, due to a loophole
• Maximum loan amount: N/A
• Term: Minimum seven days, maximum 180 days

Utah

• Legal: Yes
• Rate cap: None; 652% APR on average
• Maximum loan amount: No limit
• Term: May not exceed 10 weeks

Virginia

• Legal: Yes, but heavily regulated
• Rate cap: 36%
• Maximum loan amount: $2,500
• Term: Maximum 24 months

Washington

• Legal: Yes, but heavily regulated
• Rate cap: 391% on a 14-day loan
• Maximum loan amount: The lesser of $700 or 30% of gross monthly income
• Term: Maximum 45 days

Wisconsin

• Legal: Yes
• Rate cap: No limit
• Maximum loan amount: Lesser of either $1,500 including fees or 35% gross monthly income
• Term: 90 days or less

Wyoming

• Legal: Yes
• Rate cap: 780%
• Maximum loan amount: Not specified
• Term: One calendar month