Illinois residents need a responsible and reliable lending solution when unexpected expenses arise. Consumer-friendly installment loans replace payday loans, ensuring access to the funds they need with transparent and regulated terms.
Short-Term Personal Loan Rates and Fees in Illinois
APRs
Under Illinois law, all fees must be included in the APR, providing a true picture of the cost of borrowing. When Public Act 101-0658 was signed into law in 2021, it capped interest rates for all small consumer loans, including installment loans, at 36% APR. Payday loans, which typically exceed this limit, are not allowed in Illinois. Before committing to any borrowing, carefully review the terms and rates of your loan offer.
Loan Amounts
Under Illinois law, the maximum amount for a short-term loan is either $1,000 or 25% of the borrower's gross monthly income, whichever is lower. The loan amount should also not exceed 25% of the borrower’s gross monthly income, whichever is less. The maximum loan amount applies to each new loan. However, loans must not result in continuous indebtedness for more than 45 consecutive days without a mandatory break or transition to an Extended Repayment Plan.
Terms
Installment loans in Illinois must have a repayment term of at least 13 days, with maximum terms varying based on loan size and repayment structure. Illinois law prohibits borrowers from taking out a new short-term loan within five days of repaying a previous one if it would result in more than 45 consecutive days of indebtedness. That is, you cannot have a new payday loan taken within five days of repaying a previous loan if it would extend your period of continuous indebtedness beyond 45 consecutive days. After 45 consecutive days of being in payday loan debt, there is a mandatory seven-day cooling-off period before a new loan may be issued.
Fees
Licensed lenders in Illinois must disclose all fees and include them in the 36% APR cap. The lender may charge a maximum of $1 for verification.
Short-Term Loan Example
Although many payday-style lenders in Illinois have exited the market following stricter regulations, some licensed providers offer short-term installment loans that comply with the 36% APR cap. Here’s an example:
- Loan Amount: $1,000
- APR: 36%
- Repayment Term: 4 months (as installment loans cannot have terms as short as 45 days)
- Estimated Monthly Payment: Approximately $276
- Total Repayment: Around $1,104 (including all allowable fees and charges)
This example illustrates how a short-term loan might work when fees and interest are integrated into the 36% cap. Actual amounts may vary based on your lender’s specific calculation methods and any additional administrative charges.
Lending Regulations in Illinois
Illinois enforces strict standards to protect consumers, requiring all providers to adhere to the 36% APR cap. For installment loans under the 36% APR cap, repayment terms may extend well beyond 45 days (up to 120 days or more), as the Consumer Installment Loan Act governs them along with the Predatory Loan Prevention Act.
For more details, please refer to the Illinois Department of Financial and Professional Regulation.
| Regulation | Details |
|---|---|
| Interest Rate Cap | 36% |
| Maximum Loan Amount | $1,000 or 25% of the borrower’s monthly gross income |
| Term Length | 13 to 45 days |
| Fees | Included in the APR; maximum $1 verification fee |
| Oversight | Illinois Department of Financial and Professional Regulation |
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How to Request a Short-Term Loan in Illinois
When you need cash fast, our process is straightforward and efficient.
Provide Your Information
Complete our online form with your desired loan amount, financial details, and basic personal information.We Search Lender Offers
Our system searches through our wide network of reputable lenders to find the perfect one that may offer exactly what you need.Accept and Get Funded
Please carefully review the terms, and if it works for you, sign the agreement electronically. Then, you may receive the funds in your account shortly after.Loan Alternatives in Illinois
Emergency Loans
Emergency loans provide fast funding with a simple qualification process for immediate cash needs, ideal for urgent car repairs or medical bills.
Personal Loans
Personal loans offer higher amounts and longer repayment terms, making them a versatile option for more significant expenses.
Installment Loans
Installment loans allow you to enjoy predictable, scheduled payments that help manage your budget effectively. With these loans, you can spread your repayment over several months.
Bad Credit Loans
Bad credit loans are specifically designed for consumers with less-than-perfect credit. They have much higher interest rates and consider other factors, such as current income.
FAQ
Are Short-Term Loans Legal in Illinois?
In Illinois, short-term loans are available exclusively as installment loans provided by licensed lenders. Payday loans are prohibited.
What Are the Requirements to Request a Short-Term Loan?
Common requirements include:
- Being 18 years or older
- Being a U.S. citizen or a permanent Illinois resident
- Having an active checking account
- Having a valid Social Security number
- Having a stable income
What are the Top 5 Cities for Short-Term Loans in Illinois?
Key cities include Chicago, Aurora, Naperville, Rockford, and Joilet—areas where many licensed lenders offer installment loans tailored to local consumers.
How Quickly Can I Receive My Funds?
If your application is approved and you sign the loan agreement, funds are typically transferred to your account within one business day so that you can address your financial needs without delay.
Are Guaranteed Short-Term Loans Available in Illinois?
Licensed lenders in Illinois must evaluate your financial eligibility before offering a loan. Any promise of “guaranteed” is most probably a scam and does not comply with state regulations.
How Does Illinois Compare to Other States?
Illinois allows short-term loans only in the form of installment loans, with a maximum loan amount of $1,000 or 25% of the borrower’s gross monthly income, whichever is less, and an APR cap of 36%.