A payday loan might be an option if you need extra money between paychecks
If you find yourself in a tight spot financially, you may be considering a payday loan. This guide will help you navigate the regulations around payday loans in New Mexico.
Apply for a payday loan, installment loan or line of credit conveniently online and enjoy great customer service.
- Minimum loan amount: $200
- Maximum loan amount: $1,000 (unless otherwise stated)
- Turnaround time: As soon as 1 business day, depending on your bank’s policies
- Loan term: Varies by state
- Good credit not required
- Confidential and secure
- Must have a valid bank account, phone number and email address
- Must be 18+ years old and have a regular source of income
Are payday loans legal in New Mexico?
Yes. New Mexico Statutes chapters 58-15-32 to 38 govern the operation of payday lenders and require a lender be licensed by the New Mexico Financial Institutions Division before offering a loan.
- Maximum loan amount: $2,500
- Loan term: 35 days or less
- Financing fees: $15.50 per $100
- Verification fees: $.50 per $100
- APR: A 14-day $100 loan has an APR of 416%
- Finance charge: A 14-day $100 loan costs $116
Although you can borrow up to $2,500 with a payday loan, New Mexico law dictates that you can’t borrow more than 25% of your gorss monthly income at any one time, including the principal and all applicable fees.
If you can’t afford to pay back your loan by the due date, a lender may charge you a $15 non-sufficient funds (NSF) fee per loan. In addition, New Mexico allows repayment plans of 130 days where you pay back your outstanding loan amount in equal installments. There is no option to roll over or refinance your loan.
New regulations coming in January 2018New Mexico has recently passed new laws that will impact how much interest a payday lender can charge. The amount will be lowered to 145% APR, which means payday loans will be less costly and easier for consumers to pay back.
If you’re considering a payday loan, check out these providers
Check the websites of any providers you’re interested in to confirm they operate in New Mexico.
What do I need to apply for a payday loan?
You can apply for a New Mexico payday loan by visiting a storefront or by submitting an online application. To qualify, you have to meet some basic eligibility criteria: be at least 18 years old, an American citizen or permanent resident and have a regular source of income.
If you meet these qualifications, you’ll need to supply some extra information:
- Personal details, such as your name, date of birth, Social Security number and a valid form of ID
- Contact details, such as your address, email and phone number
- Employment details, such as your employer, how long you’ve worked and your monthly income
If you’re applying online, the lender may also require you give it access to an active checking account.
Consider these alternatives before taking out a payday loan
If you’re struggling to pay your everyday bills, New Mexico has a number of programs in place to help. You should consider contacting some of the programs below:
- Temporary Assistance for Needy Families (TANF)
- Supplemental Security Income (SSI)
- Low Income Home Energy Assistance Program (LIHEAP)
- Supplemental Nutrition Assistance Program (SNAP)
- New Mexico Energy $mart Program
If you’re a resident of New Mexico and need a little extra cash, a payday loan might be an option. Determine if you have the ability to repay before taking one out and be sure to read over the terms of your contract before you apply.
Do you have any more questions about payday loans?
Is there a cooling off period between payday loans?
Yes. State law requires a 10-day cooling off period.
Who can I contact to file a complaint about a payday lender?
You should get in touch with the New Mexico Financial Institutions Division.
How many loans can I have out at once?
You can have as many loans as you can afford, provided the total doesn’t exceed 25% of your gross monthly income.