0 1000 $
Apply Now

Payday Loan Rules in Louisiana


Before you decide to proceed with a payday loan, it is important for you to understand some of the laws outlined by the state of Louisiana. The laws are there to protect you, and they were implemented to keep the payday loan lender from using predatory lending tactics. There is a stigma attached to payday loans, and they are generally associated with negative sentiment. However, in some instances a payday loan really helps you during emergency situations where you need fast money, and you do not have the cash reserves on hand to solve the situation. In either case, it is important to know some of the basic laws.


General Louisiana Payday Loan Laws


Below you will find some of the important laws related to loan limits, finance charges, loan terms and interest rates. These are very important in protecting your rights as a borrower.


  1. The maximum loan amount you can obtain is $350.
  2. The maximum amount of interest a payday lender can charge is 16.75 percent of the face amount of the check.
  3. Payday loans are installment loans, and the maximum amount of days you have to repay the loan is 60 days.
  4. The maximum finance rate and fees is where you get hit the hardest in terms of the overall cost of a payday loan. Therefore, Louisiana sets limits on these fees. The lender can only charge a five dollar documentation fee. On top of this fee the lender can charge the greater of16.75 percent of the check, or $45.
  5. If you take out a 14 day loan, the lender can charge and additional $25 on top of the interest rate.
  6. A lender, by law, is allowed to charge a 650 percent APR on a 14 day, $100 loan.

As you can see, payday loans are quite expensive. Determining whether or not you would like to pursue a payday loan requires some knowledge behind the overall costs. The amount of interest, fees and the ultra-high APR gives you a sense of why there is negative sentiment towards payday loans. However, the cost of a payday loan was far greater than those listed above until Louisiana enacted the laws. Proceed with caution, but do keep in mind that a payday loan is a viable resource for those situations where you need money right away.


Take Your Time To Perform A Research


Your haste at the time of borrowing a cash advance in Louisiana is understandable. No one wants to avail these loans unless they are in urgent need of money. Still, you are advised to take your time and perform a thorough research to get relevant information. Your solitary purpose should be to find a lender who can offer you the best solution considering your particular case.


While trying to get pertinent information, you should look for interest rates, finance charges and other applicable terms and conditions. Once you have access to important data of various lending organizations, you can make a better decision regarding whom to choose. Internet is the perfect tool for this purpose. Moreover, by making an online search you can also take the benefit of stiff competition among various quick payday loan lenders.


Every salaried individual can apply for a loan in Louisiana. Chances of rejection of loan application are negligible because of its very easy eligibility criteria. You are not asked to furnish many unnecessary papers along with your loan application. Similarly, you credit history also has no importance because lenders do not pull your credit record before approving your application. People with bad credit are the biggest beneficiaries of this service.


To make the disbursal of money faster, lenders have made it mandatory that you should own a bank account in which they can deposit money directly. So, no time is wasted in sending paper checks and money comes to your account within hours. Once you receive requested funds, you can immediately use it for paying off whatever emergency bill has been troubling you. Get breathing now and repay the amount comfortably on your pay day after receiving your paycheck.




GET STARTED