Loan Rates and Fees in Montana

Montana caps deferred deposit (payday) loan charges at 36% per year - the total of all fees and interest cannot exceed that annual rate. Loans are limited to $300 in principal and terms of up to 31 days; a borrower may not have more than one payday loan outstanding at a time, tracked through a statewide database.

On a $300 loan due in 14 days, the maximum finance charge at 36% APR is roughly $4.14, making your total repayment approximately $304.14. Federal disclosure rules require your agreement to show the APR - at this cap, roughly 36%.

• Rollovers are prohibited - the lender cannot renew or extend the loan and charge a new fee.
• Returned payment fee - labeled "NSF fee" or "returned check fee" on your agreement - is capped at $30, and only one fee may be charged per check even if redeposited more than once.
• A database verification fee may appear as a separate line item; the amount cannot exceed the actual fee the lender pays to access the database - confirm any charge labeled as a verification or database fee with the Montana Division of Banking and Financial Institutions.

If an offer exceeds these limits, verify with the Montana Division of Banking and Financial Institutions.

Licensed consumer lenders may charge interest as allowed under the Montana Consumer Loan Act - the Montana Division of Banking confirms the cap at 36% per year. On add-on basis loans, charges are computed on the full original principal for the full term and added to the loan balance upfront.

On a $1,000 add-on loan at 36% for 12 months, the precomputed interest is $360, making your total repayment $1,360 in equal monthly installments of approximately $113.33.

• Refinancing restarts interest on the new amount - compare your remaining balance to the new loan's total of payments before you agree.
• Returned payment fee - the same $30 cap applies as described in the payday section above.
• Late fees may be charged only as disclosed in your loan agreement and filed with the Division - confirm the amount on your agreement before signing.
• You can prepay in full at any time - on add-on loans paid off one month or more before the final installment, the lender must refund precomputed charges using the statutory rebate method; see the Montana installment loans page for repayment details.

If an offer exceeds these limits, verify with the Montana Division of Banking and Financial Institutions.

• Returned payment fee: cannot exceed $30 for either product.
• Total of payments: the single most important number - this is what you'll actually pay back over the full term, and it must appear on your agreement.
• Military households: if you or your spouse are active-duty, the all-in cost cannot exceed 36% MAPR under federal law - compare that to the APR on your offer.