CLEARBORROW · PUBLISHED NOVEMBER 12, 2026
Payday loans in Illinois: the 36% APR cap
Since March 23, 2021, Illinois’ Predatory Loan Prevention Act caps the APR on most consumer loans in the state — including payday and consumer installment loans — at 36%, calculated the way the PLPA requires. Traditional triple-digit payday loans are therefore no longer allowed for licensed lenders, and installment payday loans are no longer permitted. Loans taken before that date still have to be repaid.
On this page
What the law says
- The PLPA caps the interest rate on all subject consumer loans in Illinois, including those under the Consumer Installment Loan Act and the Payday Loan Reform Act, at 36% APR (IDFPR ↗).
- The law took effect on March 23, 2021, the day it was signed (IDFPR FAQ ↗).
- Installment payday loans are no longer permitted (IDFPR FAQ ↗).
- Loans taken out before March 23, 2021 with an APR above 36% still have to be repaid (IDFPR ↗).
What 36% means in dollars
| Our example at 36% APR | Interest |
|---|---|
| $500 for 30 days | $14.79 |
| $1,000 over 12 months | About $206 (monthly payments of $100.46) |
Our arithmetic. Compare a two-week payday fee of $15 per $100, which is about 391% APR.
Check any lender
Before borrowing, check whether the lender is licensed by searching the State of Illinois database of licensed companies at idfpr.illinois.gov (IDFPR ↗). An offer far above 36% APR to an Illinois resident is a red flag; report it to the IDFPR.
Options in Illinois
- A payday alternative loan from a federal credit union (APR capped at 28%).
- A cash advance app — compare costs with our fee calculator.
- Asking the company you owe for more time or a payment plan.
- If you already owe a payday loan: extended payment plans and getting out of payday debt.
Questions
Can I still get a payday loan in Illinois?
Licensed lenders must keep loans at or under the 36% PLPA APR, so the traditional two-week, triple-digit payday loan is effectively gone.
Does the cap apply to online lenders?
The PLPA applies to persons and entities making loans to Illinois consumers unless they are exempt, such as banks and credit unions; ask any lender how it complies.
What about loans from before 2021?
The IDFPR says loans taken out before March 23, 2021 with APRs above 36% must still be repaid.
Sources and limits
- Illinois IDFPR: consumer credit brochure (PLPA 36% cap) ↗
- Illinois IDFPR: Predatory Loan Prevention Act notice and FAQs ↗
- CFPB: why a payday loan’s APR is higher than its fee ↗
Sources checked November 12, 2026. Laws change; confirm with your state regulator before borrowing. This is general information, not legal advice. Worked examples are our own arithmetic. How we use sources.