Aubrey Saffa Bender
Written by Aubrey Saffa Bender

Aubrey Saffa Bender has been a freelance journalist and journalist since 2013. She writes about topics that range from personal finances and education to technology and business. In her work for PaydayChampion, Aubrey primarily draws from her writing experiences regarding mortgages, home purchases, and real estate. She graduated with a B.A. with a major in English at The University of Colorado Boulder.

The Illinois Department of Financial and Professional Regulation limits borrowers to a maximum of two outstanding payday loans at any time. Total loan amounts are limited to less than $1,000 or 25% of the borrower’s gross monthly income. Lenders must verify that their borrowers afford the loan payments before making any loans to them, and they are unable to extend the terms of an existing loan more than twice.

Illinois’s regulations on payday loans are useful to protect consumers from getting caught in a cycle of debt, where they get multiple loans and struggle to repay them. The high-interest rates and fees quickly accumulate, making it challenging for borrowers to get back on their feet.

Research the terms and conditions if individuals need a payday loan. Get alternative options like borrowing from family, negotiating with creditors, or seeking help from a nonprofit credit counseling agency. Maintaining a solid financial plan and living within its means is the best way to keep away from the risks of payday loans.

Overview Of Payday Loans In Illinois

A Payday loan is a short-term borrowing useful to cover unexpected expenses. They have high-interest rates and fees that take more work to manage for borrowers. Payday loans are helpful in emergencies, but they lead to a cycle of debt if borrowers do not pay back on time.

Payday loans in Illinois are legal but are subject to regulations, including borrowing limits and rules regarding fees and interest rates. Borrowers must check other options, like credit counseling, before turning to payday loans and carefully research lenders and their terms.

How To Get Payday Loans in Illinois?

Illinois payday loan applicants must choose a licensed lender with fair terms and costs to get loans. Fill out an application with personal and financial information like name, address, work status, and bank account data. Pay stubs or bank statements are requirements by certain lenders. The lender decides on the loan within minutes or hours. Accepted borrowers must sign the loan amount, fees, and payback schedule. The lender puts the cash into the borrower’s bank account within one business day after approving the loan arrangement.

  1. Search for a licensed payday lender in Illinois. Choose a reputable lender with reasonable terms and fees.
  2. Fill out the application form, which requires personal and financial information like name, address, employment status, and bank account details.
  3. Other lenders require applicants to provide proof of income or employment, like a pay stub or bank statement.
  4. The lender reviews the application and notifies applicants of the loan decision, usually within minutes or hours.
  5. Borrowers need to sign a loan agreement that outlines the terms and conditions of the loan, including the loan amount, fees, and repayment schedule if approved.
  6. The lender deposits the funds directly into their bank account, usually within one business day after accepting the loan agreement.

What Are The Requirement to Get Illinois Payday Loans?

The requirements to get IllinoisPayday Loans are that borrowers must be at least 18 years old and have a steady source of income. It includes a job, government benefits, or other forms of regular income. Borrowers provide proof of their identity, like a driver’s license or state-issued ID card. The requirements for obtaining an Illinois payday loan vary depending on the lender. Check specific lenders for their requirements.

  • Borrowers must be 18 to apply for a payday loan in Illinois.
  • They must have a regular source of income, like a job, to qualify for a payday loan in Illinois.
  • Be a resident of Illinois to apply for a payday loan in the state.
  • Have an active checking account in good standing to receive a payday loan in Illinois.
  • Borrowers must demonstrate that they have the ability to repay the loan in full, including all fees and interest, on or before the due date.
  • The maximum loan amount for a payday loan in Illinois is $1,000 or 25% of your gross monthly income, whichever is less.

What Are The Advantages of Illinois Payday Loans?

The advantage of payday loans in Illinois includes quick access to cash for unexpected expenses, easy and straightforward application processes, no credit check requirement, regulatory protections for borrowers, and the ability to prevent overdrafts and late payment penalties.

  • One advantage of payday loans is that they provide quick access to cash when one needs it. Payday loans help people get by until their next paycheck if an emergency like a car repair or medical bill arises, 
  • Payday loan applications are simple, and many lenders offer online applications. It makes it easy to apply for a loan and receive a decision quickly.
  • Payday lenders in Illinois generally don’t require a credit check, which is beneficial if one has poor credit or no credit history.
  • Payday loans in Illinois are subject to regulations limiting the amount one borrows and the fees lenders charge. It protects borrowers and helps prevent them from getting trapped in a cycle of debt.
  • Payday loans are a great way to prevent overdrafts and late penalties on bills and other financial obligations.

Payday Loans Rules in Illinois

The Payday Loan Industry in Illinois is overseen by the Department of Financial and Professional Regulation (IDFPR). The state government has enacted consumer protection measures to prohibit payday loan sharking and check that all payday lenders operate ethically and responsibly. Listed below are the key payday loan rules in Illinois.

  • Loan terms – Payday loans in Illinois are not allowed to exceed $1,000 or 25% of the borrower’s gross monthly income, whichever is less. The loan term must be at least 13 days and no more than 120 days.
  • Finance charges – Payday lenders in Illinois allow charges up to $15.50 per $100 borrowed. 
  • Maximum loan amount – The maximum amount for payday loans in Illinois is $1,000.
  • Cooling-off period – Borrowers must have a cooling-off period of at least 7 days after obtaining 45 consecutive days of loans. 
  • Repayment plans – The lender must offer a repayment plan of at least 55 days with no more fees if a borrower is unable to repay a loan on the due date.
  • Limits on rollovers – Payday lenders in Illinois are unable to roll over loans more than twice. A rollover occurs when a borrower extends their loan term by paying only the finance charge.
  • Collection practices – Lenders in Illinois must follow the Fair Debt Collection Practices Act and are not allowed to use abusive or harassing tactics to collect a debt.

Illinois Payday Loans Regulations

The state government regulates payday loans in Illinois to protect consumers from predatory lending practices. The regulations specify that payday loans must not exceed $1,000 or 25% of the borrower’s gross monthly income, whichever is less. The loan term range from 13 days up to 120 days, and finance charges are limited to a maximum of 36%. Fair and lawful lending practices strictly prohibit criminal actions against borrowers,  according to UStatesLoans.

Legal Status


Interest Rate (APR)


Maximum Loan Amount

$1,000 or 25% of gross monthly income

Minimum Loan Term

13 days

Maximum Loan Term

120 days

Number of Rollovers


Number of Outstanding Loans


Cooling-off Period

7 days after 45 consecutive loan days



Finance Charges

$1 verification fee; A fee does not exceed $25 for insufficient funds

Statute of Limitations

10 years (from the last payment)

Database Loan Tracking



What Are The Alternatives To Payday Loans In Illinois?

The alternative to payday loans in Illinois that borrowers get include personal loans, credit counseling, credit cards, paycheck advance, and government assistance programs. Personal loans have lower interest rates and longer repayment terms than payday loans, while credit counseling agencies work with borrowers to create a budget and a debt repayment plan. Credit cards are a more affordable option than payday loans, while paycheck advances offered by employers do not charge interest or fees. Government assistance programs help individuals and families cover expenses and avoid the need for payday loans.

Credit Counseling

Credit counseling is a nonprofit service that helps individuals facing debt-related issues. The main objective of credit counseling is to guide and advise individuals on managing their debt and improving their financial condition. Credit counselors offer budgeting, debt management, and credit repair information and negotiate with creditors to reduce interest rates and fees. The counselor evaluates an individual’s financial status to create a customized plan that helps them manage their debt during a counseling session. Credit counseling provides a roadmap to managing debt and improving overall financial health.

Credit Cards

Credit cards are a form of borrowing where individuals purchase or withdraw cash up to a certain credit limit set by the card issuer. Cardholders must pay back the borrowed amount and interest and fees every month. Credit cards provide a convenient source of credit for individuals who need to make purchases or cover unexpected expenses, but they lead to debt problems if not used responsibly. 

Government Assistance Program

Illinois government assistance programs provide financial support to individuals and families facing economic difficulties, offering assistance to cover basic living expenses like food, housing, healthcare, and child care. Its programs help individuals avoid high-interest payday loans and improve their financial stability. Other assistance programs available include SNAP, TANF, LIHEAP, Medicaid, and CCAP. Individuals apply for its programs to pay for basic needs and enhance their financial health.

Paycheck Advance

A paycheck advance is a short-term loan in which an individual borrows money against their future paycheck. The amount of the paycheck advance is usually a percentage of the borrower’s upcoming paycheck. The loan is repaid with interest and fees when the borrower receives their next paycheck. Employers offer paycheck advances as a benefit, or payday lenders charge high-interest rates and fees. Check the costs and risks of a paycheck advance and explore alternatives like budgeting or seeking assistance from nonprofit credit counseling organizations.

Personal Loan

Personal loans are unsecured loans that allow borrowers to receive a lump sum of money upfront, which borrowers must repay over time with interest. The loans are useful for various purposes, like debt consolidation, home improvement, or major purchases. Personal loans have fixed interest rates and repayment terms and require no collateral. The loan amounts and repayment terms vary depending on the lender, the borrower’s credit history, and income. Personal loans are available from traditional banks, credit unions, and online lenders. The application process involves a credit check and income verification.

Borrowing from Family or Friends

Borrowing from family or friends is an alternative to getting a payday loan, as it is easier to negotiate the terms and does not involve interest or fees. Borrowing from loved ones has potential drawbacks. It strains or damages their relationship with the lender if the borrower doesn’t repay the loan. Clear and upfront about the loan terms, including the repayment schedule and any interest or fees charged. Both parties must check the potential risks and benefits before entering a lending agreement.

What Happens if Borrowers Are Unable to Payback Loans?

Borrowers in Illinois who default to repay their payday loans face various consequences, including but not limited to late fines, collection calls, legal action, a bad effect on their credit score, and accruing interest and fees. Borrowers must talk to their lenders and look into other borrowing options than payday loans, like borrowing from loved ones, working up payment arrangements with creditors, or visiting a nonprofit credit counseling agency for advice. Lenders have the option of going to court to get their money back from borrowers who don’t pay or won’t negotiate repayment terms.

Frequently Asked Questions

What is the maximum number of payday loans one can have at the same time in Illinois?

Illinois law prohibits consumers from having more than one payday loan at a time from licensed lenders in the state. Borrowers must repay an existing payday loan in full before applying for a new one.

Are there any restrictions on the number of payday loans a person can obtain in Illinois?

Illinois limits borrowers to one payday loan at a time from in-state licensed lenders. There is also a cooling off period requiring loan repayment in full before another can be issued. Borrowers cannot have overlapping payday loans.

Can I take out multiple payday loans from different lenders in Illinois?

No, Illinois prohibits borrowers from having more than one payday loan at once, even if from different licensed lenders in the state. You must fully repay an existing payday loan before applying for a new one in Illinois.

Are there any consequences or penalties for having multiple payday loans in Illinois?

The Illinois Department of Financial and Professional Regulation can take disciplinary and legal action against borrowers with multiple concurrent payday loans. This could include penalties up to $5,000 per violation.

Is there a waiting period or cooling-off period between payday loans in Illinois?

Yes, Illinois requires a 7-day cooling off period between payday loans. Borrowers must wait 7 days after fully repaying one payday loan before taking out another. This applies even when switching lenders.

Aubrey Saffa Bender

Aubrey Saffa Bender

Content Editor and Writer

Aubrey Saffa Bender has been a freelance journalist and journalist since 2013. She writes about topics that range from personal finances and education to technology and business. In her work for PaydayChampion, Aubrey primarily draws from her writing experiences regarding mortgages, home purchases, and real estate. She graduated with a B.A. with a major in English at The University of Colorado Boulder.