A payday loan is a short-term, high-interest loan that is typically due on the borrower's next payday. In New Hampshire, payday loans are legal, but there are strict regulations in place to protect consumers from predatory lending practices.
Under New Hampshire law, payday lenders are prohibited from charging more than 36% APR on loans. Additionally, payday lenders are required to obtain a license from the New Hampshire Banking Department and must comply with a number of other regulations, including:
- Limits on loan amounts. Payday loans in New Hampshire cannot exceed $500.
- Limits on fees. Lenders may charge a maximum fee of $15 per $100 borrowed, up to a maximum of $45.
- Limits on rollovers. Lenders may not roll over loans more than once and must provide borrowers with a repayment plan if they are unable to repay the loan on time.
What is the Payday Loan Limit in New Hampshire?
In New Hampshire, the maximum amount for a payday loan is $500. This means that a borrower cannot take out a payday loan that is more than $500. Additionally, New Hampshire law limits the fees that payday lenders can charge. Lenders are allowed to charge a maximum fee of $15 per $100 borrowed, up to a maximum of $45 for a loan of $300. Lenders cannot charge additional fees or interest beyond these limits.
How To Borrow a Payday Loan in New Hampshire?
- Find a licensed lender. Make sure to choose a payday lender that is licensed by the New Hampshire Banking Department. You can check the license status of a lender on the department's website.
- Gather the necessary documents. The lender will typically require you to provide proof of income, such as a pay stub or bank statement, and identification, such as a driver's license or state ID.
- Complete the application. Fill out the lender's application, providing your personal and financial information.
- Review the loan terms. Before accepting a loan, make sure to carefully review the loan terms, including the fees, interest rate, and repayment schedule.
- Sign the loan agreement. If you decide to accept the loan, sign the loan agreement, which will outline the terms and conditions of the loan.
- Receive the funds. If approved, the lender will typically deposit the loan funds directly into your bank account within one business day.
Pros and Cons
Pros
Cons
Requirements
- Age. You must be at least 18 years old to qualify for a payday loan.
- Income. You must have a steady source of income, such as a job or government benefits. You will need to provide proof of income, such as a pay stub or bank statement.
- Identification. You must have a valid government-issued ID, such as a driver's license or state ID.
- Bank account. You must have a checking account in good standing. The lender may require you to authorize automatic withdrawals from your account to repay the loan.
- Contact information. You will need to provide contact information, such as a phone number and email address.
Interest Rates
In New Hampshire, payday lenders are limited to charging a maximum fee of $15 per $100 borrowed, up to a maximum of $45 for a loan of $300. This means that if you borrow $300, the maximum fee you can be charged is $45. Lenders cannot charge additional fees or interest beyond these limits.
It is important to note that while New Hampshire law limits the fees that payday lenders can charge, payday loans can still be expensive. For example, if you borrow $300 and are charged the maximum fee of $45, you would need to repay a total of $345 on your next payday. If you are unable to repay the loan on time, you may be charged additional fees and interest, which can quickly add up.
Lenders
- NHcash.com provides loans ranging from $100 to $500, and the repayment term varies depending on the loan amount and the borrower's financial situation. To apply for a loan with NHcash.com, borrowers must complete an online application and provide personal and financial information.
- Advance America has several locations throughout New Hampshire, offering payday loans, installment loans, and other financial services.
- Checkmate has one location in New Hampshire, offering payday loans and other financial services.
- Fast Cash has several locations throughout New Hampshire, offering payday loans, installment loans, and other financial services.
Alternatives
- Credit union loans. Credit unions offer personal loans with lower interest rates and fees than payday loans. You may also be able to borrow more money and have a longer repayment term.
- Personal installment loans. They are another option for borrowers. These loans have a longer repayment term than payday loans and can be repaid in installments over time.
- Cash advances on credit cards. If you have a credit card, you can take a cash advance, which allows you to borrow cash against your credit limit. Cash advances often have lower interest rates and fees than payday loans.
- Community assistance programs. Many communities in New Hampshire offer financial assistance programs for those in need. Contact your local community center or social services agency to see what assistance programs are available.
- Negotiating with creditors. If you are struggling to make ends meet, you may be able to negotiate with your creditors to reduce your payments or work out a payment plan.
Payday Loans Legal Regulations in New Hampshire
In New Hampshire, payday loans are legal, but they are subject to certain regulations to protect consumers from predatory lending practices. Here are some key regulations that apply to payday loans in New Hampshire:
- Loan amounts. Payday loans in New Hampshire cannot exceed $500.
- Fees. Lenders may charge a maximum fee of $15 per $100 borrowed, up to a maximum of $45 for a loan of $300.
- Repayment. Borrowers must repay the loan in full on the due date, which is typically their next payday. Lenders may not allow borrowers to roll over the loan or renew it for another term.
- Cooling-off period. Borrowers must wait at least one day after repaying a payday loan before taking out another loan from the same lender.
- Disclosure. Lenders must provide borrowers with a written disclosure of the terms and conditions of the loan, including the annual percentage rate (APR).
- Licensing. Payday lenders must obtain a license from the New Hampshire Banking Department.
Important
How to Choose a Lender
-
Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
-
Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
-
Carefully review all the terms and conditions of your payday loan contract.
-
Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
-
Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
-
Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Other Loans
- Cash Loans for Fast and Easy Access to Funds
- Navigating the World of Same-Day Loans
- Quick Loans: Fast and Easy Cash Solutions
- Top Online Payday Lenders: Make An Informed Decision
- Understanding the Power of Interest Free Loans
- Emergency Loans for Quick and Reliable Financial Assistance
- Fast Loans for Quick and Convenient Financing
- Quick Loans: Fast and Easy Cash Solutions
- List of Online Payday Lenders: Find Reliable Lending Options
- Instant Payday Loans Online: Quick Cash Advances in Minutes
- Urgent Loans for Bad Credit: Quick Financing Solutions for Challenging Times
