Loan Rates and Fees in North Carolina

North Carolina does not license payday or short-term lenders. The state's payday lending authorization expired in 2001 and was not renewed, making single-payment payday loans illegal to originate here.

For installment loan costs, see below. For non-loan options, visit Alternatives in North Carolina.

Licensed consumer finance companies in North Carolina use a tiered interest rate structure based on the unpaid principal balance of your loan, computed as simple interest on the declining balance - as you pay down principal, the interest portion of each payment drops.

Loans above $12,000 carry a flat 18% annual rate cap. A processing fee (loan origination fee on your paperwork) is allowed: up to $30 on loans of $3,000 or less, or the lesser of $150 or 1% of the amount financed on loans above $3,000.

On a $2,000 loan at 33% annual interest for 12 months, you'd repay approximately $2,363 total - roughly $363 in interest plus the $2,000 principal, assuming equal monthly payments on a declining balance.

• Refinancing restarts interest on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
• The returned payment fee - labeled "NSF fee" or "returned check fee" on your agreement - is capped at $25.
• Late fees are capped at $18 per late payment.
• You can prepay in full at any time with no penalty - interest stops accruing on the payoff date. See the installment loans page for repayment details.

If an offer exceeds these limits, verify with the NC Commissioner of Banks.

• Returned payment fee: should not exceed $25.
• Total of payments: add up every scheduled payment on your agreement and confirm it matches the "total of payments" line in the federal disclosure box.
• Optional add-ons: if the offer includes credit insurance or a "protection plan," ask whether it's required - it's usually optional and adds to total cost.