Payday and Installment Loans in Illinois: What the 36% Cap Allows

Illinois hasn't banned payday loans outright, but since March 23, 2021, the Predatory Loan Prevention Act (PLPA) has capped them at 36% APR, the same as title and installment loans, with fees counted toward the cap. A two-week payday loan can't earn a lender much at that rate, so most Illinois borrowers now get a licensed installment loan instead.

How to Get a Loan in Illinois

In Illinois, that means an installment loan from a licensed lender at 36% APR or less, fees included.

1. Decide how much you need and how long you need to repay it; on $1,000 over 12 months, the cap keeps total charges to about $206.
2. Submit one request through LendUp with your ID, income details and bank account. Lenders in our network review it, and you see the full cost before you sign.
3. Check the lender in IDFPR's Consumer Credit licensee search, and turn down any offer above 36% APR from a lender that isn't a bank or credit union.

Payday Loans in Illinois: The 36% Cap

Governor Pritzker signed the PLPA on March 23, 2021, and it applies to covered loans made after that date. The 36% limit uses the federal Military Lending Act's way of figuring APR, which counts fees and charges that a standard APR can leave out. The Attorney General puts it simply: whether it's a payday loan, a short-term installment loan or financing for a car or furniture, the lender can't charge more than 36% APR, all charges and fees included.

• Loans over 36% are void. If a covered loan has an APR above 36%, you don't have to repay it, and the lender can't collect or keep any principal, fee, interest or charge.
• Almost every consumer loan is covered. Payday loans, title loans, installment loans, pawn loans, car loans, retail installment contracts, buy-here-pay-here deals, wage advance products and income share agreements.
• Online and phone loans count. The PLPA applies to consumer loans made in Illinois through any medium, including the internet and telephone.
• A few lenders are exempt. The cap doesn't apply to banks, savings banks, savings and loan associations, credit unions, insurance companies or commercial loans.

What a Loan Can Cost Under the Cap

Because the 36% is all-in, these totals include any fees. If a lender adds an origination or processing fee, the interest it can charge goes down by the same amount.

Installment Loans in Illinois

Licensed installment loans are the main way to borrow in Illinois outside a bank or credit union. IDFPR's Consumer Credit Section licenses consumer installment lenders, payday lenders and auto title lenders, and in fiscal 2025 it counted 500 consumer installment license locations, headquarters and branches.

If a lender that isn't a bank, credit union or insurance company offers you more than 36% APR, the loan is covered by the PLPA and is void. That includes lenders that only operate online.

Verify a Lender in Illinois

1. Open IDFPR's Consumer Credit licensee search, which lists consumer installment lenders and payday lenders.
2. Search by the company's legal name as it appears on your loan offer.
3. Check that the license is active, and match the name and address to your offer.
4. For banks, credit unions and other license types, start from IDFPR's license lookup page.

To complain about a lender, use IDFPR's online complaint form, email [email protected] or call (888) 473-4858. For a lender charging more than the law allows, you can also file with the Attorney General's Consumer Protection hotline at 1-800-386-5438.

Your Rights in Illinois

• Over-cap loans are void. You don't have to repay a covered loan above 36% APR, and the lender can't collect anything on it.
• Fees count toward the cap. The Military Lending Act method folds in fees and charges, so a lender can't stay under 36% by moving costs into fees.
• Two places to complain. IDFPR handles licensed lenders, and the Attorney General takes complaints about lenders that charged more than the allowable rate.
• Military borrowers. Federal law separately caps most loans to active-duty servicemembers and their families at a 36% Military Annual Percentage Rate.

Illinois Lending by the Numbers

• In 2021, the year the PLPA took effect, 62,102 Illinoisans took out 122,767 high-interest loans tracked by IDFPR, the fewest in a decade.
• Those loans totaled $114 million, down from $661 million in 2020.
• Active Consumer Credit Section licensees fell to 900 in 2021, a drop of more than 50% from 2020.
• In fiscal 2025, IDFPR counted 500 consumer installment license locations and 3 payday loan licensees.

Illinois Loan Questions

Official Sources

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