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Compare your loan options in Maine
Thinking about getting a payday loan in Maine? Here's how to make an informed decision.
When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in Maine and everything else you should know about how payday advances work.
When you’re facing a financial emergency, like an expensive car repair or an unexpected bill, it can be hard to make ends meet between paychecks. In Maine, plenty of people turn to payday loans. Fortunately, Maine’s laws heavily regulate how much interest a lender can charge to protect consumers from high-cost lending.
How do payday loans in Maine work?
Unlike some other states, Maine regulates its lenders and supervises them to make sure they aren’t providing predatory loans. Referred to as small loans in the Maine Revised Statutes Ann. 9-A §1-201 and 9-A §1-301, there is a rate cap of 30% on anything you borrow up to $2,000.
The fees a lender can charge you depends on how much you borrow.
| Loan amount | Fee |
|---|---|
| Less than $75 | $5 |
| Between $75 and $250 | $15 |
| Greater than $250 | $25 |
What do you need to apply for a payday loan?
Maine doesn’t allow for lenders to cash post-dated checks. However, you can still apply in-store or online easily provided you have your required personal details with you. A lender will likely ask for the following during the application process:
- Your name, date of birth, Social Security number and a valid form of ID
- Your address, email and phone number
- Details about your current employment and monthly income
- Details about your bank checking account
Remember that you will have to be at least 18 years old, a US citizen or permanent resident and have a regular source of income in order to apply.
Payday loan alternaties in Maine
Payday loans are still high-cost forms of credit, even with Maine’s strict lending laws. If you need assistance with expensive bills, you can look into the Low Income Home Energy Assitance Program (LIHEAP), Alternative Aid Assistance or Parents as Scholars. These will help you take control of your budget.
Other options include asking friends and family for help or requesting a payday advance from your employer. Learn more about other resources you can take advantage of instead of payday loans.
Bottom line
While a payday loan can be helpful when you’re facing a big expense, it’s best to exhaust all your other options before taking on more debt. Read our guide to payday loans to learn more about the benefits and drawbacks.
