Articles - Illinois Payday Loan Facts

If you are an Illinois resident and are looking for a payday loan then you will have many options to choose from. There are a number of companies in Illinois that offer payday loans and you can locate them by simply searching the internet. In the United States, each state has its own set of legislations dealing with payday loans. If you wish to apply for an payday loan, you will have to check out the rules associated with it. Most of the conditions are same throughout the country except for a few special rules that are unique to every state.

Getting an Illinois payday loan online is fairly easy as all you need as a borrower is a steady source of income and an active bank account. You can apply for this loan online through a lending company's website. The lender in this case doesn't check your credit history so even if you have a bad history, it won't stop you from getting the payday loan. As per the laws governing payday loans in Illinois, the maximum amount of money you can borrow is $1500. Two weeks after taking the payday loan, you are expected to complete the repayment.

But in case you are not able to repay on time, the law allows you to renew the loan. The maximum period allowed for repayment of Illinois payday loans is 45 days. The rules also state that the lender can charge a maximum interest rate of 15.50% for every loan of $100. This imposes an upper limit on the interest rates charged by all companies which eventually benefits borrowers. All the above laws and rules are specifically set down for Illinois payday loans. All lending companies follow them strictly which ensures borrower advantage.

Illinois laws state that a person can have a maximum of two outstanding payday loans at a time. Additionally, the aggregate of the two loans must not exceed the maximum limit of $1500. If you repay your loan after 45 days then there is a 'cooling-off' period of 7 days before you can borrow again. Rolling over of an is also prohibited under law. The law also makes it compulsory for lenders to allow defaulters to repay the loan in monthly installments as per a newly agreed repayment plan. In case the lender refuses this arrangement, a borrower can make a complaint with the Illinois Division of Financial Institutions.