Loan Rates and Fees in Illinois

Since the 2021 Predatory Loan Prevention Act, all consumer loans in Illinois - including payday loans - are capped at a 36% APR (calculated using the federal Military Lending Act method), on loans up to $1,000 or 25% of your gross monthly income (whichever is less), with terms of 13 to 120 days; total outstanding payday balances across all lenders are capped at the same limit, tracked through a statewide database.

On a $300 loan due in 14 days, the maximum finance charge at 36% APR is approximately $4.14, making your total repayment roughly $304.14; federal rules require lenders to disclose APR, which on this loan would be approximately 36%.

• Rollovers are prohibited - a lender can't extend or renew the loan for an additional fee.
• The returned payment fee - labeled "NSF fee" on your agreement - is capped at $25 per failed attempt.
• A database verification fee of up to $3 per transaction may appear as a separate line item.

If an offer exceeds these limits, verify with the Illinois Department of Financial and Professional Regulation.

Licensed installment lenders in Illinois operate under the Consumer Installment Loan Act (CILA), which caps interest at 36% APR on loans up to $40,000, calculated on the actual unpaid principal balance - you pay interest only on what you still owe.

On a $1,000 loan at 36% annual interest for 12 months, you'd repay approximately $1,197 total - roughly $197 in interest plus $1,000 in principal.

• Refinancing restarts interest on the new amount - compare your remaining balance to the new loan's total of payments before you agree.
• The same $25 returned payment fee cap applies - see payday loan costs above.
• Late fees are not separately capped by statute; ask the lender for the exact amount before you sign, and confirm it appears on your payment schedule.
• You can prepay in full at any time with no penalty - interest stops accruing on the date you pay off the balance; see installment loans in Illinois for repayment details.

If an offer exceeds these limits, verify with the Illinois Department of Financial and Professional Regulation.

• Returned payment fee: shouldn't exceed $25 for either product.
• Total of payments: the single most important number - add every scheduled payment to see what you'll actually pay back over the full term.
• Military households: if you or your spouse are active-duty service members, the all-in cost can't exceed 36% MAPR under federal law - compare to the APR on your offer.