A cash advance in Louisiana can give you quick access to up to $350 — or more depending on the lender.
If you’re a resident of Louisiana, have less than perfect credit and find yourself in a financial emergency, you might be looking for an alternative to traditional bank loans. A payday loan, or cash advance, could get you through this rough patch, but understanding how these types of loans work is important.
This guide will give you the information you need to make your decision. The most important thing to keep in mind is that a payday loan is a temporary fix, not a long-term solution. If you’re thinking about applying for one, take some time to examine this guide to payday loans in Louisiana.
Can I get a payday loan in Lousiana?
Yes, payday loans up to $350 are legal in Louisiana. The laws fall under the Louisiana Revised Statutes Annotated §§ 9:3578.1 et seq., which dictate the rules lenders must abide by in order to obtain a license.
- Max Loan: $350
- Loan Term: 60 days or less
- APR: The APR for a 14-day $100 loan is 780%
- If you cannot repay a payday loan in Louisiana by its due date, you can elect to repay the loan amount in installments. You can make use of this extended payment plan through a lender only once in a 12-month period.
Louisiana doesn’t have a limit on the amount of loans you can take out at once, but keep in mind that the more loans you have, the more debt you will accumulate. The best decision is to have only one outstanding loan at a time.
If you have any complaints about a lender, contact the Louisiana Office of Financial Institutions.
Compare lenders that offer payday loans
Check the websites of any providers you’re interested in to confirm they operate in Louisiana.
Why might I consider taking out a payday loan in Louisiana?
- Apply if you have poor credit. You can apply for a payday loan even if you have poor or bad credit. This is because most payday lenders also take your existing financial situation and ability to repay into account.
- Simple process. Applying for a Louisiana payday loan takes little time, whether you apply online or at a storefront. Some lenders that provide online loans let you complete the identity verification process using the Internet, so you don’t have to fax any documents.
- Get money quickly. If you’re looking for fast cash in Louisiana, getting a payday loan could work well for you. By applying at a storefront you can usually get your hands on the approved funds on the day you apply. With online loans, you can typically get the money in your bank account by the next business day.
- Use funds for different purposes. You can use proceeds from a Louisiana payday loan for any legitimate purpose. You can use the money you get to repair your car, pay bills or get by during a rough patch.
What does a payday loan cost in Louisiana?
Depending on how much you borrow and how long your loan term is, you may face higher interest costs. Here’s a breakdown of what you’ll likely have to pay:
- Financing fees. Direct payday lenders can charge up to $20 per $100 borrowed and a $10 documentation fee. The total fees cannot exceed $55 for loans between $220 to $350.
- Early repayment fees. You don’t have to pay any fees or penalties if you repay your loan ahead of time, so it’s in your best interest to get ahead of your due date to avoid any extra charges.
- Collection fees. Payday lenders in Louisiana can charge a non-sufficient funds (NSF) fee based on the bank charge and either 5% of the check or $25, whichever is greater. You may also have to pay court costs and reasonable attorney fees.
- Default fees. If you default, the lender can charge an APR of 36% for the first 12 months and an APR of 18% after the 13th month.
- Rollovers. Louisiana payday loan laws don’t permit renewals or rollovers. However, a lender may accept a partial payment of 25% of the advanced amount along with applicable fees and enter into a new loan contract.
How can I apply for a payday loan in Louisiana?
You can apply online by clicking Go to Site on your chosen lender above or by walking into your nearest short term lender’s store. Eligibility criteria will differ between Louisiana lenders, but will generally include the following:
- You are over 18 years of age
- You are an American citizen or a permanent resident of the U.S.
- You have a regular source of income
Completing the application successfully requires that you submit different kinds of information:
- Your name, date of birth and Social Security number
- Details from a valid form of identification such as your driver’s license, passport or state ID
- Your residential address, email address and phone number
- Details about your employment, income and pay frequency
Some things you should consider before taking out a payday loan
While payday loans can be helpful in emergency situations, you should never rely on them as a long-term system of funding. These are high-cost loans that can quickly add to your debt. If you find yourself struggling to pay back your loan, you might want to contact some of Louisiana’s support programs, such as the Temporary Assistance to Needy Families or the Family Independence Temporary Assistance Program (FITAP).
A payday loan can be a good way of financing an emergency, but you’ll need to be wary of the high costs of default and the possible extra charges that come with your loan. It’s best to exhaust all other options before turning to payday lenders.