Payday Loans in Maine: What a Licensed Lender Can Charge

Yes, but only from a lender licensed by Maine's Bureau of Consumer Credit Protection (BCCP). The cap is 30% a year on the first $2,000 you owe, though on a small loan a lender can take a minimum charge of up to $25 instead.

Monthly Costs Under Maine's Tiered Rate Cap

Worked out from Maine law, not offers from lenders in our network; a lender can charge less.

The rate drops as the balance grows: 30% on the part of the balance up to $2,000, 24% from $2,000 to $4,000 and 18% above that. Once the amount financed is over $8,000, the cap is 18% on the whole loan. These caps bind lenders licensed under Maine's Consumer Credit Code. A lender can add other charges only if, with the finance charge, they stay within the cap, apart from items the law lists, such as official fees, some insurance and late charges.

What a Small, Short Maine Loan Can Cost

On small amounts, Maine lets a lender charge a flat minimum instead of the rate: up to $5 when you borrow $75 or less, $15 above $75 and under $250, and $25 on $250 or more. Over two weeks, that's a high annual rate:

APRs worked out from Maine's minimum charges for a 14-day term, not offers from lenders in our network. If you repay early, the lender can keep the minimum charge. For anything you'll need months to repay, an installment loan at the rates above usually costs less per dollar.

Online and Out-of-State Lenders Lending to Mainers

• Maine's Consumer Credit Code covers a loan from any lender, wherever it's based, to a consumer located in Maine.
• A non-bank lender charging more than 12.25% a year needs a supervised lender license. It doesn't need a Maine office, but it must follow Maine law.
• If a lender needed a license and didn't have one, you aren't obligated to repay the loan, and you can recover what you paid.
• Since 2021, a company working with a bank or another exempt lender is treated as the lender if it holds the main economic interest in the loan or the deal is built to evade Maine's limits.
• Making, offering, assisting or arranging a loan priced above Maine's limits is banned, and such a loan is void.

Repaying a Maine Loan: Schedules, Late Fees and Early Payoff

• Equal payments on small loans. A loan of $1,000 or less repaid in more than one payment must be scheduled in substantially equal installments over no more than 25 months.
• Late fees are limited. After 15 days, a late charge is generally 5% of the unpaid installment, up to $10, and only once per installment.
• Pay early, no penalty. You can prepay part or all of the balance at any time; only a permitted minimum charge can be kept.

Requesting a Maine Loan From a Licensed Lender

1. Choose the amount and term. At Maine's maximum rates, $3,000 over 24 months is about $166.36 a month.
2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
3. Check the lender's Maine supervised lender license in the Bureau's licensee search before you sign.

Checking a Lender With Maine's Bureau of Consumer Credit Protection

1. Open the Bureau's licensee search and enter the company's legal name.
2. Look for an active Supervised Lender license.
3. Match the name to your loan agreement. A license covers only the name on it, and a company can't advertise loans under another name without a license for it.

Questions or complaints: 800-332-8529 (toll free in Maine) or 207-624-8527, or file a complaint online or by mail.

Common Questions

Official Sources

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