- Borrow $100 to $20,000
- All credit types
- Fast funding
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 Maryland and everything else you should know about how payday advances work.
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.
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.
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
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.
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.