Payday Loan Laws in Maryland
Payday loans have become one of the most popular short-term loan options for those
in need of immediate cash, although Maryland payday loans are prohibited by law. This does not mean that a loan intended to last until payday cannot be obtained,
however, as many lenders offer personal loan options that work in the same manner.
Many of these lenders can be found online, although legitimate sources should be
registered with the Commissioner of Financial Regulation, making it crucial to verify
the credentials before submitting an application.
It is important to note that payday loans are not available in every state and laws
and regulations to vary by state. Information for
Maryland Payday Loans is provided for your convenience.
Maryland is one of 21 US states that has specifically prohibited the issuing of
payday loans. The reason for this is something that potential borrowers will appreciate,
specifically being that the triple-digit interest rate that often comes with these
loans has been outlawed in the state of Maryland. In fact, Maryland has limited
the interest that can be charged by any lender for any type of loan under $6,000
to a maximum of 33% APR. As the interest typically charged on payday loans can be
as high as 900% APR, Maryland payday loans have therefore become illegal.
This does not mean that payday advance loans cannot be obtained in Maryland, however,
as many lenders offer similar short-term personal loans that comply with Maryland
small lending laws. The best part is that these alternative loans work in the same
way, meaning that applications can be completed online, and approval can be granted
in less than an hour. There is also so please rephrase or omit entirely required, no complicated forms,
and no extensive financial documentation to be submitted. Proof of employment is
generally all that is necessary, and repayment can be made on the next payday. The
interest rate restrictions have therefore become an actual benefit for borrowers,
as reduced interest means that the amount of the repayment will be far less would
be required in other states. For this reason, Maryland payday loans may be one of
the best solutions when immediate cash is needed.
Lenders who offer payday advance loans in Maryland can be easily found through a
simple Internet search, although it is recommended that the credentials of any lender
be verified before an application is submitted. Legitimate lenders should be registered
with the Commissioner of Financial Regulation, as this organization safeguards the
borrower by ensuring that lending institutions adhere to the laws regarding the
applied interest rate. The organization even has an Enforcement unit in place to
handle complaints should excessive interest be charged, making Maryland payday loans
safe, as well as fast and convenient.
Payday loans have become one of the easiest ways to obtain fast cash in the event
of an emergency, although in the state of Maryland, this issuing of these loans
is prohibited by law. Maryland payday loans are not illegal, however, as this prohibition
is directed only at preventing the excessive interest rate that is typical of payday
advance loans, rather than the issuing of the loan itself. Maryland limits the interest
on loans less than $6,000 to a maximum of 33% APR, which means that short-term loans
intended to last until payday are still available, but for a much lower cost. The
fact that legitimate lenders should also be registered with the Commissioner of
Financial Regulation has also made them a safe alternative to the traditional cash
Take a look at the benefits of applying for Payday Loans Online
if available in your state.