Payday loans in Illinois

Payday loans in Illinois

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Anyone could have a monetary crisis, and payday loans offer quick cash to borrowers to solve situations such as a car repair or pay off bills. More than half of US states allow their citizens to take payday loans. Find out how payday loans work and the necessities and legality of payday loans in Illinois.
Payday loans in Illinois are unlawful. However, in March 2021, Governor JB Pritzker signed an acquisitive loan act to cap payday loans APR to 36%. Citizens of Illinois can now request payday loans and repay them in less than 45 days. Most states have recently come up with laws to cap high-interest rates charged on payday loans. APR charged on payday loans would rise to 300%. The move to cap off the high yearly percentage rate is to protect consumer rights and protect its citizens against falling into bad debt.

Payday loans

Law status  illegal
MIN Loan Amount $100
MAX Loan Amount $1000 OR 25% of gross income
MIN Loan Term 13 days
MAX Loan Term 45 days
Additional fees  $1 verification fee 
NSF fee $25
Collateral or guarantor None, unsecured 
Number of simultaneous loans  2
Cooling off period Seven days after 45 consecutive loan days
Rollover  None 
Extension, repayment plan 55 days repayment plan with no additional charges
Default penalties  No additional charges 
Credit score requirements  None 

Installment loans 

Law status Legal
MIN Loan Amount $1,000
MAX Loan Amount  $5,000
MIN Loan Term  6 months 
MAX Loan Term   36 months
Collateral or guarantor None, unsecured 
Credit score requirements  None

Personal loans 

Law status Legal 
MIN Loan Amount $1,000
MAX Loan Amount $50,000
MIN Loan Term 13 months
MAX Loan Term 96 months 
MIN APR 7.04%
Collateral or guarantor  None, unsecured 
Credit score requirements  None
  • Requirements for a payday loan are less, and the loan is processed instantly. The process takes a long time for the borrower to receive money for a personal loan.
  • The interest charged on payday loans in Illinois is higher than the interest charged for personal loans.


Illinois governor, JB Pritzker, signed the predatory loan prevention act in March 2021 to cap interest on payday loans in Illinois to a 36% Annual Percentage Rate. (APR) the interest that was charged before was almost triple the current APR. Lenders are only allowed to charge $1 for the verification fee and $25 for an insufficient funds fee. A statute of limitation is when the creditor can sue the borrower for failure to pay their debt. The statute of debt in Illinois is ten years.

Alternatives of Payday Loans

There are several low-cost loans that one can take as an alternative to payday loans in Illinois.

American fintech council members

These online platforms use technology to offer loans at an affordable interest of 36% APR or more minor.

Lending circles 

They consist of a group of people who contribute money to each other. It charges little to no interest and requires commitment as one must be willing to contribute to help someone. 

Family loans 

A family member can give you a loan that requires little to no interest. The loan terms and speed of payment depend on the agreement between you and the lender. A loan from a family member does not require physical collateral. 

How it works 

A few steps are involved when applying for a payday loan in Illinois. You must fill out a registration form either online or payday loan office.If the application is approved, you can get cash instantly or wait for two days for your check to be deposited in your bank account.
The least time for repayment is 13 days, while the maximum time for settlement of payday loans in Illinois is 45 days made with four portions. Rollover on payday loans is not permitted in Illinois. You can request a repayment strategy if you have a loan from a payday creditor later than 35 consecutive days.
The repayment term has equal installments with no extra charges. However, you cannot exceed 90 days to repay a single payday loan in Illinois.


To qualify for a payday loan in Illinois, borrowers must fulfil the following requirements:

  • Be 18 years and above
  • Give personal details such as full names, social security numbers, and email
  • Be a lawful resident of Illinois
  • Pprovide evidence of salary
  • Have an active bank account

In addition, you should give employment details such as the company’s name and amount of income.

An Example of a Loan Fee 

For example, for a payday loan in Illinois for 500, to achieve a 36% APR, the lender will require a $1 verification fee and a finance charge of $5.90.
For the borrower to qualify for a loan, they need to provide a post-dated check of 506.90 to the lender. Payday lenders can cash the check when the loan is approved. If it fails to go through, they can charge a single $25 NSF fee.


Are payday loans still available in Illinois?

Payday loans are accessible in Illinois. The largest amount a borrower can borrow is $500, and the highest interest charged on payday loans in Illinois is 36%.

What loans are available in Illinois?

There are several loan options for residents of Illinois. They include:

  • Credit cards
  • SBA loans
  • Term loans 
  • Short term loans

How often can you get a payday loan in Illinois? 

Lenders should cut off borrowers who take three loans consecutively within a short period. Lenders should cut them off for 30 days. In addition, a borrower cannot have an extra payday loan at a time.
Payday loans in Illinois are an excellent choice to think through when you need money urgently to settle bills and fix emergencies. Payday loans in Illinois are fast, convenient and reliable.

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