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Although short-term loans are an expensive option, Oregon regulations help make them less of a risk than other states. For residents of Salem, this means you might be able to find a good deal if you borrow from the right lender. Just know that it can still be costly, and borrowing too much can lead to excessive fees down the road.
Oregon Statutory Citations 725.600 et seq. and 725A.101 et seq. governs payday lending throughout the state. These statutes apply to lenders in both physical stores and online.
Unlike other states, the maximum loan a lender can offer $50,000, and the proceeds of a loan must be used for personal, household or family expenses. But if your income is less than $60,000 per year, you’re limited to 25% of your net monthly income. Loan terms last from 31 to 60 days, and lenders can’t charge more than 36% in interest. However, a lender can charge a single origination fee of $10 per $100 borrowed or $30, whichever is less.
Lenders require that you have a regular source of income, are at least 18 years old and are a citizen or permanent resident of the US in order to qualify for a loan.
Beyond those, you should be prepared to provide some basic personal information. This typically includes supplying your Social Security number, date of birth and your gross monthly income. And if you apply online, you may be required to share your bank’s routing number and account number so the lender can confirm where it will deposit your loan and debit your payments.
Although lenders are limited to the amount of interest they can charge borrowers in Oregon, you should still be cautious if you’re looking to borrow a large loan amount. 25% of your net monthly income may not seem like a lot, but after fees and other charges are applied, it can be difficult for some people to repay a short-term loan.
Carefully go over your budget to make sure you can afford the repayment terms. If you can, request a loan term on the longer end of the legal limit so that you’ll have more time to repay your lender.
Salem doesn’t have any other short-term loan options. Payday loans aren’t available because of the cap on interest, and auto title loans aren’t legal. Because of this, you may want to consider a short-term loan alternative, including:
Although payday loans aren’t fully legal in Oregon, you still have other short-term loan options. There are plenty of lenders in and around Salem, as well as online, that may be able to lend to you no matter your credit history. However, you’ll want to familiarize yourself with Oregon’s lending laws to be sure you’re getting a good — and legal — deal.
And before you borrow, read more about short-term lending so you know exactly what to expect when you borrow.
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