Maine Payday Loans
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.
By law, payday loans are prohibited in the state of Maine. Lenders in this state must possess a license to deposit checks into someone’s account and the state sets a minimum fee for cashing a post-dated check.
What do you need to apply for a payday loan?
Maine doesn’t allow 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 alternatives 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.