Illinois is a state in the United States of America and lies in the Midwestern region. The state has a lot of agricultural productivity in many parts and also has natural resources such as coal, timber, and petroleum. Popular tourist destinations in the state are Chicago, Naperville, Springfield and Rockford amongst many more.
A sudden need for cash can come up in anyone’s life. Even if you are the most financially well-planned person you can still encounter a situation where you find yourself in need of an instant payday loans without the hassles of traditional credit checks and bank formalities. Payday loans are the answer to these short-term financial issues. Payday lenders give out loans to consumers in need usually within 24 hours of application. There are also not many credit checks involved related to your past history, the only thing a lender may check is your current monthly salary and your capability to pay back the loan you are taking out.
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Payday lenders are legal in the state of Illinois and the regulations are defined by Illinois Division of Financial Institutions. If you find any lender is not following these laws you can complain to this department.
The regulations are divided into following sections:
Loan terms: The maximum loan amount you can avail is $1000 or 25% of your gross monthly income. Payday loans Illinois can be up to $1000 and 22.5% of your gross monthly income. The term of a simple payday loan can be anywhere from 13 days to a maximum of 120 days whereas for a payday installment loan it can be from 112 days to 180 days. The rate of interest on a $100 loan is 15.5% and a $1 fees for verification. Based on this for a 14 day $100 loan you will have to pay back $115.5 which results in an APR of around 403%.
Limitations on debt: At any point in time you can have two loans and you cannot roll over your loan. There is also a cool off period defined, 7 days for a payday loan of 45 consecutive days. The state also says that if you are unable to repay your loan on the due date, the lender must allow you an extra 55 days to pay back the amount in installments with no extra charges.
Rules regarding collection: Criminal action is prohibited by the state, however, the lender is allowed a onetime $25 charge as collection fees if the borrower does not pay back on the due date.
If you have been struck by emergency and must take help of a payday loan, ensure the lender you select is abiding by all the regulations stated by the state legislation.
It is always better to avoid getting yourself in a financial situation that may cost you a lot more than your actual need. To avoid being in this place you should always plan your finances in advance and keep a rainy day fund for such times. In current times you will find many financial advisors available in the markets who can help you with fixing your finances. Also, analyze why you are taking this loan, is it really an emergency with no other option or something else can be worked out. For example, if you are taking the loan to meet household expenses before your salary comes, cutting back on certain things or asking for a small advance on your salary may seem like a better option. However, if it is something like a medical emergency you may not have time to explore other options.
Online Payday loans come with advantages and disadvantages, so financial experts suggest to explore all options before you go for a payday loan.