Learn about the laws before you apply for a loan.
Maryland may not allow payday loans, but there are other options available when you need money for an emergency or help out of a tough financial situation.
Our top pick: LendYou Short-term Loans
- Simple application
- Quick decision
- Bad credit OK
Our top pick: LendYou Short-term Loans
- Min. Loan Amount: $100
- Max. Loan Amount: $15,000
- Turnaround Time: 1 business day
- Loan Term: Varies
- Requirements: $1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
Are payday loans legal in Maryland?
No, payday loans aren’t legal in Maryland. Maryland Law § 12-101 et seq. prohibits payday lending in all forms, including online loans. The maximum interest a small loan provider can charge is 2.75% per month or 33% per year for the first $1,000 of a $2,000 loan. On the next $1,000, a lender can charge no more than 2% per month or 24% per year.
Compare installment loans available in Maryland
What other options do I have if I need extra money in Maryland?
Maryland has a number of assistance programs you can utilize when you’re struggling with your finances, including:
- Supplemental Nutrition Assistance Program (SNAP)
- Food Supplement Program (FSP)
- Temporary Cash Assistance
- Energy Assistance
- Homelessness Prevention Program
- Temporary Disability Assistance
- Maryland Children’s Health Insurance Program (MCHIP)
- Maryland Medicaid
- Energy Assistance
- Maryland Medical Pharmacy Program
Other resources offered by the state can be found on Maryland’s page dedicated to public assistance programs for residents.
Are there any other short-term options in Maryland?
While you’re getting your finances in order, you may want to consider some of these options or browse a list of payday loan alternatives to see other ways to get emergency funds without taking out a payday loan.
- Consolidate your debt. You may want to look into consolidating your debt by taking out one large loan to cover your smaller ones. You may even get a better interest rate to keep the costs of the loan down.
- Ask for an advance on your paycheck. When you’re in a bad financial situation, your boss may be able to give you an advance on your next paycheck. You might be able to get the money you’ve already worked now instead of waiting for bills and having interest charges pile up.
- Consider a credit card cash advance. If you already have a credit card and it isn’t maxed out, you can take out an advance against your line of credit. This is generally cheaper than a payday loan and you can pay back what you borrow over a longer term.
What are the typical costs of a loan in Maryland?
Maryland doesn’t technically ban small-dollar loans, but it does put a strict limit on the interest a lender can charge. For a personal loan of $2,000 or more, the maximum interest rate is 2% per month or 24% per year. However, there are several factors that impact the interest you pay, like your credit score, the amount you borrow, the lender and the loan term.
You may have to pay additional fees in different circumstances. Like interest rate, these will vary by lender. Check your loan agreement to learn the full details of what you might have to pay before you borrow.
Bottom line
While you may not be able to take out a payday loan in Maryland, there are other options that can help you make ends meet. And if you’re still looking for a short-term loan, there are some installment loans options you may want to consider if you’re facing an emergency expense.
I need to obtain a loan to retain a lawyer’s as soon as possible. What options do I have in the state of MD?
Hi Lisa,
Thank you for getting in touch with finder.
You’re currently at the right page. Kindly compare your options on the comparison table on this page. You may choose the lender that would suit your needs most by checking the max loan, requirements and turnaround time columns of the table. Once you’ve decided, you may click on the green Go to site button to start your online loan application or learn more about the lender.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I live in MD. So what type of small loan could I get here next day???
Hi Linda,
Thanks for getting in touch! You may refer to this page to check out same day payday loans in the US. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this helps!
Best,
Nikki
I took out a payday loan and i got injured on the job and im not able to pay it back right now. Can they take my taxes state or federal if i dont pay back by tax time
Hi Brittaney,
Thanks for reaching out and I’m sorry to hear about your situation. Hope you are recovering well. It is not your fault you got into an accident so its best to communicate with your lender and see what the next steps are in paying off your loan. Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
I have 2 payday loans. I just found out that pay day loans are illegal in md. If I stop paying will they come after me.
Hi Tracy,
Thanks for getting in touch with finder. I hope all is well with you. :)
First thing you need to check is to ensure that you are not getting charged with an illegally high-interest rate. In Maryland, the maximum interest a small loan provider can charge is 2.75% per month or 33% per year. If you have determined that the loan you applied for is really an illegal payday loan, then you need to report them to the proper authority.
Moreover, you would need to contact your state’s consumer protection office to find out what you’re required to pay back. Generally, you might be required by law to only pay back the principal, but depending on the specific terms of the loan and whether it’s technically an actual payday loan or not, you may be required to pay back the interest and fees as well.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I live in MD, I have an account with a payday loan company. I have been using their service for several years. Apparently their loans are illegal in MD. Is there anything I can do to recoup some money? Feeling ripped off.
Hi Jeff,
Thanks for leaving a comment on finder.
The first thing you can do is to contact the lender to confirm whether they issue refunds and check the process on how you could do this. In case that they won’t give you a refund and you think it’s best to file a complaint against them after you’ve reconsidered the possibilities, you may get in touch with Maryland Commissioner of Financial Regulation directly instead.
Hope this has helped.
Cheers,
Joel
I took out a payday online loan in Maryland. I stopped paying because the interest was too high. I attempted to settle but they did not accept. After going back and forth they offer me a settlement of 15%. Can they come back and sue me for the 85% of the remaining balance thur another collection agency?
Hi Angela,
Thanks for your inquiry
Debt collectors act on behalf of companies to recover late payments. You may not recognize them at first because they don’t operate under the name of the company you owe money to. If you’ve missed payments or a creditor’s records make it appear as if you have, a debt collector may contact you.
Please check out this page to know what to do when you’re in debt.
Hope this information helps
Cheers,
Arnold