Loan Rates and Fees in Arizona

Arizona does not license payday or short-term lenders - the state's payday lending authorization expired on June 30, 2010 and was not renewed. For installment loan costs, see below.

Licensed consumer lenders in Arizona use a declining-balance (actuarial) interest model with two rate tiers: up to 36% per year (3% per month) on the first $3,000 of outstanding principal, and up to 24% per year (2% per month) on any amount above $3,000, up to the $10,000 loan cap.

Lenders may charge a loan origination fee of up to 5% of the loan amount, not to exceed $150; no other upfront fees are permitted beyond this and any recording or non-filing insurance fees actually paid to third parties.

On a $2,000 loan at the maximum 3% monthly rate repaid over 12 months, you'd repay approximately $2,510 total - roughly $410 in interest plus up to $100 in origination (5% of $2,000) and the $2,000 principal. Because interest accrues on your declining balance, paying early reduces the total interest you owe.

• Refinancing restarts interest and fees on the new amount - compare your remaining balance to the new loan's total of payments before you agree. A new origination fee cannot be charged if the loan is refinanced within one year.
• Returned payment fee: Arizona's consumer lender statute does not specify a cap - ask the lender for the exact amount before you sign, and confirm with the Arizona Department of Insurance and Financial Institutions.
• Late fees are capped at 5% of the unpaid installment amount; the lender must wait at least 7 days past the due date before charging one.
• You can prepay in full at any time with no penalty - interest stops accruing on the paid-down balance immediately. See installment loans in Arizona for early payoff details.

If an offer exceeds these limits, verify with the Arizona Department of Insurance and Financial Institutions.

• Returned payment fee: no state cap specified - ask the lender for the exact amount before you sign.
• Total of payments: add every scheduled payment on your agreement and confirm it matches the "total of payments" line.
• Military members: if you or your spouse are active-duty, federal law caps rates at 36% APR including fees - confirm the lender applied this.